ASIANA AIRLINES SUSTAINABILITY REPORT 2015
ASIANA AIRLINES
SUSTAINABILITY REPORT
2015
Overview 2015 Asiana Airlines Sustainability Report focuses on major promotion policy and performances, diverse opinions of the stakeholders, media analysis which has induced significant issues. This report contains the performance of sustainability management activities that we achieved in 2014 with our passion and devotion. Reporting Period This report covers from January 1 to December 31, 2014 with some informations which had changed until August 2015. Reporting Scope This report includes major operational activities and performances at domestic business sites(the headquarters, hangars in Incheon and Gimpo, branches, etc), and overseas business sites for the passengers and cargos. Principles & External Assurance To assure reliability of the information herein, the Korea Productivity Center has offered external assurance in accordance with the validation standards of AA1000AS 2008, ISO 26000 and GRI G3 Guideline. Further Information Further information contained in this report can also be found in the business report which is included in the Electronic Disclosure System of the Financial Supervisory Service homepage(http://dart.fss.or.kr) and the Asiana Airlines homepage(http://flyasiana.com).
※ Company information such as corporate governance and financial structure is based on the statistics available as of December 2014. ※ The information can be subject to change after the publication of this report.
Asiana Airlines Sustainability Report 2015
CONTENT
04 CEO MESSAGE 06 Major Achievements In 2014
Company Overview 12 Introduction 14 GLOBAL NETWORK
Sustainability Management 18 Material Issue Identification 20 Sustainability Management 20 Structure 22 Sustainability Management 20 Organization 23 Win-Win Management 25 Ethics Management 26 Corporate Governance 28 Stakeholder Communication 28 Employee
Economic Value 36 Domestic and Foreign Market 36 Conditions 36 Passenger 41 Value Sharing of Stakeholders
Environment & Social Responsibility
42 Risk Management
60 Environment Management
42 Fair Trade
61 Climate Change Response
43 Disclosure
66 Environment Control
39 Cargo
69 Environmentally-Friendly Activities
Customer Satisfaction 46 Safety Management
70 Social Responsibility
49 Aviation Safety Support
APPENDIX
52 Service
77 Financial statements
54 Marketing
86 GRI G3.1 Index & Alignment with 86 ISO 26000
29 Fostering Human Resources
55 Customer Satisfaction 55 Management System
32 Safety and Health In Workplace
57 Awards
90 Organization Chart 91 Third-Party Assurance Report
CEO MESSAGE
All of us will do our best without stopping for sustainable growth and development First of all, I would like to convey my sincere appreciation to our stakeholders for continued affection and trust. In the last year, we were able to reinforce our core competency and competitiveness under the motto of ‘new Kumho Asiana’. These achievements were made possible because of the passion and unwavering focus which we learned in our early years. We chose ‘Flawless Operational Safety’ and ‘Regaining Customer Trust’ as our top priorities because safety and service are Asiana Airlines’ highest goals. We’ve made improvements in flight training system and maintenance quality system to reinforce our general safety systems. Aisana Airlines has introduced A380, the next generation cutting-edge aircraft, to provide convenience for customers and put them into lA flights. In order to reinforce the competitiveness of long-haul flights, we expanded Paris and Istanbul flights. Furthermore, we added more flights to Guangzhou, yanji and Shenzhen to take the dominance as a leading carrier in the Chinese market. Asiana Airlines has laid the groundwork for sustainability with the revitalization of organizational culture. ‘Smile brings blessings’ campaign, the meeting between executives and staffers which leads to frank exchanges of opinions, has given us the sense of belonging and strong bond by tearing down the walls between positions. Asiana Airlines is going to fulfill the management policy of the last year, new Kumho Asiana, in 2015 and will try its best to be a reliable and beautiful company under the new motto “Strengthen Self without Stopping”. That means we are ready to stand as one and work tirelessly for the steady development and growth of the company. In addition to the safety and service items we have already promoted, an integrated safety information system will be built and bold investment for hi-tech operation equipment will be made to continuously strengthen the infrastructure for safety. This will also enhance the foundation for bringing about the awareness of safety issues. In order to reinforce our competitiveness through the latest aircraft, we confirmed the plan to introduce A350XWb and A321 nEO. We hope this will help build up the foundation for future growth. This year, we will put additional A380s into new york flights and will start a new flight to Rome to reinforce our competitiveness in long-haul flight. Also, we will speed up the plan to add our strategic air routes in China and other Asian countries. Asiana Airlines hopes to become a company that contributes to the nation and society by social and environmental activities. We are going to take responsibility for social and environmental issues with persistence and sincerity. One of such efforts is the ‘unICEF Spare Coin Collection’ which we has been working with the Korean Committee for unICEF (united nations Children’s Fund). In the last year, the accumulated amount of money has exceeded 10 billion won. This fundraising campaign will be continued for the benefit of underprivileged children. There are also other activities and campaigns to promote corporate responsibility such as ‘Social Work Volunteering In Relay’, ‘beautiful Classroom’ in China, tree planting events on the reclaimed lands near metropolitan areas and various environmental activities to reduce greenhouse gases. In retrospect, Asiana Airlines has grown and evolved thanks to our stakeholders’ continuous affection and support. We will make utmost efforts to raise the corporate value to the best in the business and to be a ‘beautiful Company’who is willing to take the social responsibilities by raising awareness of safety issues and differentiating the services with distinct ideas. We hope all our stakeholders will favor us with supports and expectations. Thank you. Soo Cheon, Kim President & CEO
2 014 A S I A N A ’ S F O C U S
6
Main Achievements In 2014 Strategic network Management ● Creating Competitiveness ○ Reinforce the competitiveness for large aircraft and premium service by introducing A380 ○ Increase the efficiency of small aircraft → Reinforce the competitiveness for short-haul flights ○ Preparations for the changeover to a new fleet(with new types of airplanes) from 2017 on
● Network Reinforcement ○ Passenger
• new Flights : Jinan(2 times per week), barcelona(between May and June), Irregular Flights to Venice(between July and September) • Increased Flights : Guangzhou(10 times per week → 14 times per week), Shenzhen(4 times per week → 7 times per week), yanji(5 times per week → 7 times per week), Shenyang(3 times per week → 4 times per week), Paris(4 times per week → 5 times per week), Istanbul(4 times per week → 5 times per week), Hanoi (11 times per week → 14 times per week) ○ Cargo
• Expanded Flights : Hanoi(6 times per week → 7 times per week), narita (2 times per week → 3 times per week) • Extended Flight networks : Interline(2 more companies) • Flexible Flight Operations : Hanoi(7 times per week ↔ 5 times per week)
Responsiveness to the Market & IT based Management ● Creating Competitiveness ○ build the integrated management system for seats and fares ○ build the integrated management system for seats and fares Reinforcement of profitability management (expertise, effectiveness) ○ Increase profits by wet leasing u.S. lines during the peak seasons for cargo transportation ○ Make contracts with more GPA(Global Partnership Agreement) partners : 12 companies in 2013 → 13 companies in 2014 ○ Detailed classification of cargo RM(Revenue Management) Class
● Diversification of Marketing ○ Expand the foundation of foreign market ○ K-POP Marketing : Increase our brand recognition to the fans of the Korean Wave (Sponsoring for the Korean Wave concerts) ○ Expanded Participations for younger Generation Dream Wings Flying Marketer
(College Students) back up the dreams and passion → Elevate the corporate image (Elementary, middle and high school students) Running hands-on programs by age → Increase friendliness and preference (Customers in their 20s) Produce and spread online promotion contents
○ Increased supply of E-Commerce : An increase of 40% from 2013 ○ Increased amount of mail order retailing supply (Germany, China, Singapore, belgium)
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Asiana Airlines Sustainability Report 2015
● Reinforcement of IT Sales Fundamentals ○ Open Altea customer management system and build an airport system
Improvement of airport automation service(Self check-in automatic ticketing system[KIOSK] usage rate : 17%(2013) → 25%(2014)) ○ build overseas online infrastructures (China, Europe, Southeast Asia,
Oceania, CIS → Real-time ticketing on the internet) ○ CRM(Customer Relationship Management) system construction
• Establishing the integrated management and analysis system for customer information
Safety and Service Reinforcement ● Safety Reinforcement ○ Reinforcement of flight training system
• Special Simulator training for all the flight crews (Evaluation and special education included) • Increase instructor's turnout during flight training • Develope and introduce a new training system(EbT : Evidence based Training) ○ Improvement of Maintenance Reliability
• Reinforce the technical support for foreign airports (build real-time wired and wireless communication system) • Develop techniques to repair core parts of airplanes and engines • Acquiring a certification of international standard for maintenance system(EASA[Europe]) ○ Reinforcement of cargo safety
• Reinforce the transport process of lithium batteries (not allowed in any aircraft and routes) • Reinforce the transport process of animals(Rodents are not allowed in any aircraft and routes) • Reinforce loading checkup steps (loading machine operators → load controllers → cockpit crews)
● Service Reinforcement ○ Differentiate and stabilize the A380 services
• Develope in-flight fast menus, Specialty services (barista, sommelier) • Improve Service process and facilities, Supply new items (Improve comfort wears and Slippers etc.) ○ Improve service by service quality monitoring and coaching
• Run cabin service monitoring committee and auditor • Carry out overseas airport service coaching : 10 branch offices in Southeast Asia ○ Reinforce customer guidance services(utilize SnSs etc.)
• Offer the information about A380, Improve in flight meals, Offer Mobile check in
2 014 A S I A N A ’ S F O C U S
Reinforcement of Sustainability Management ● Nurture and recruitment of power ○ Foster A380 flight crews and confirmation mechanic ○ Provide engine maintenance experts
● Activation of Organizations ○ Fortune comes to a merry home(28 times of unreserved meetings with Executives) ○ All for One Program(build trust and understanding between departments and levels. 8 times a year) ○ Positive Communication Process, Culture Travel of OZ
● Financial Structure Improvement ○ Raise manpower efficiency through process improvement ○ Maintenance engineering activities → Switch over to self repairing system ○ Secure natural hedge and long-term liquidity through diversification of currency borrowing
● Introduction of Aircraft ○ Two A380-800s, an A330-300 and two A321-200s
● Reinforcement of Advertisement and Promotion ○ Promote and advertise the A380 by steps ○ Customer participation(Two-Way) promotion : ‘Fly to’ campaign ○ Raise preference for the company by inserting PPls in major variety programs, dramas, education programs on TV
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Asiana Airlines Sustainability Report 2015
● Improvement of Corporate Image ○ Environmentally-Friendly Activities
• Tree planting activities on the world’s largest landfill • Chosen as the best airline company by DJSI for six consecutive years • Raise Environmentally-friendly image : Incheon-lA flight was selected as a Green product of the year for five consecutive years ○ Social Contribution in Overseas
• Installation of 26 Environmentally-friendly solar-powered streetlights (Istiqlal Mosque in Jakarta) • beautiful Class Project has been completed in China (21 schools in 3 years) ○ Operating a talent donation group
• Service group (114 persons), Attendees(45,000 persons in 420 classes) ○ Safety equipments trial
• Hands-on experience of safety equipments with customers • Safety training experience programs for overseas councils ○ Coin collection in the airplane for the unICEF
• The collection for charity has reached to over 10 billion KRW since 1994
56,381 54,633
55,526 Sales(KRW 100M)
1,325
● Sales and Operating Profits
422 - 615
2012
32,870
4,209
2013
34,523
4,062
Operating Profits (KRW 100M)
2014
37,036 Passenger (1M Passenger KM)
4,000 Cargo (1M ton KM)
2012
2013
Sales and Transport Performance
2014
Classification
2012
Sales(KRW 100M) Operating Profits(KRW 100M)
56,381 1,325
2013 54,633 -615
2014 55,526 422
● Transport Performance Classification
2012
2013
2014
Passenger(1M Passenger KM) Cargo (1M ton KM)
32,870 4,209
34,523 4,062
37,036 4,000
INTRODUCTION
12 Introduction 14 Global Network
Asiana Airlines will fly up into the beautiful future with our customers with the spirit of “Strengthen self without stopping.” ✽Strengthen self without stopping: strive for oneself with unceasing effort
INTRODUCTION
12
Company Overview Management Philosophy and Business Credo Asiana Airlines actually fulfilled the management policy of the year, new Kumho Asiana, in 2014. In 2015, we are trying our best to be a strong and beautiful company under the new motto, “Strengthen Self without Stopping.” Company Name Asiana Airlines Inc.
Business Credo
Company philosophy
Customer satisfaction through maximum safety and the best service
The safest, fastest and most comfortable flight to the destination on time
Date of Establishment Address
Gonghang-ro 94-1 Gangseo-gut, Seoul, Korea (Gimpo Hangar)
Business
Air Transport
Revenue
KRW 5 trillion 552 billion 678 million
Employees Job creation for communities and rationality-based management
Asiana Town, 443-83, Ojeong-ro, Gangseo-gu, Seoul, Korea (headquarters)
272, Gonghang-ro, Jung-gu, Incheon, Korea (Incheon Hangar) President & CEO Soo Cheon, Kim(金秀天)
EBIT
Management Philosophy
Feb. 17, 1988
KRW 42 billion 228 million 10,380 persons (as of April 30, 2015)
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Asiana Airlines Sustainability Report 2015
Aircraft Fleet A total of 5 aircrafts(two A380-800s, an A330-300 and two A321-200s) have been newly introduced in 2014. The aircraft fleet operated by Asiana Airlines at the end of 2014 consisted of 84 aircrafts(73 Passenger Aircrafts and 11 Cargo Aircrafts) in total. In 2015, we are planning to introduce four aircrafts (two A380-800s and two A321-200s). under a medium and longterm perspective, we have a plan to introduce 30 A350XWbs(from 2017 to 2025) and 25 A321nEOs(from 2019 to 2025). Aircraft Type
Passenger Aircrafts
The Numbers of Aircrafts
Aircraft Type
The Numbers of Aircrafts
A320-200
8
b767-300F
1
A321-100
2
b747-400F
4
A321-200
23
b747-400SF
6
A330-300
15
Subtotal
11
A380-800
2
b767-300
7
b777-200ER
12
b747-400C
2
b747-400P
2
Subtotal
73
Total
Cargo Aircrafts
84
INTRODUCTION
Global network (as of September 1, 2015)
○ 355 Domestic flights per week on 11 routes to 11 cities ○ 656 international passenger flights per week on 91 routes to 77 cities in 25 countries ○ 70 international cargo flights per week on 25 routes to 28 cities in 12 countries
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Asiana Airlines Sustainability Report 2015
Star Alliance The Star Alliance is the largest global airline alliance(28 Airlines) that connects 1,330 airports in 192 countries and operates 18,500 flights a day as of September 1, 2015. Star Alliance members offer a range of high-quality customer services such as priority booking and standby, exclusive check-in counter, the frequent flier program, the rights to use about 1,000 airport lounges across the globe, one-stop check-in service and priority baggage check.
S U STA I N A B I L I T Y D E V E LO P M E N T
18 Material Issue Identification 20 Sustainability Management Structure 22 Sustainability Management Organization 23 Win-Win Management 25 Ethics Management 26 Corporate Governance 28 Stakeholder Communication 28 Employee 29 Fostering Human Resources 32 Safety and Health In Workplace
Asiana Airlines will enhance the company’s prestige to THE WORlD bEST by creating premium corporate value.
S U S TA I N A B I L I T Y D E V E L O P M E N T
Material Issue Identification
18
Material Issue Identification Process Through the following process, Asiana Airlines has conducted analysis to identify material issues to be included in 2015 Sustainability Report. Especially, we have induced the material issues which have a influences on Asiana Airlines' sustainability management and put them into the report.
Significance Assessment
Step3 Step2
Step1 Stakeholder Issue Identification Aisiana Airlines organized an issue pool to pick out the material issues
Significance Evaluation We evaluated the issues identified from the issue pool in step 1. Relevance(degree of correlation with sustainability management) and impact(effects to the sustainability management) were taken into account.
Material Issue Selection Material issues were selected through Significance Evaluation. The contents of the 2015 Asiana Airlines sustainability report are centered on the selected material issues.
◦ Identification Methods of the Material Issue Pool
• Media Analysis Asiana Airlines has analyzed a total of 1,270 articles and press reports published from January 2014 to May 2015 to identify relevant issues that help us find out the public’s perception of the company and material sustainability issues. • International Standards Analysis GRI G3.1, ISO26000, etc. • Relevant Company Analysis Asiana Airlines has analyzed sustainability management strategies, reported issues and success cases based on the reports published by relevant companies home and abroad. • Internal Policy and Document Analysis Confirmation and analysis of Asiana Airlines' strategy, policy, major activities and performance in 2014 • The Survey of Stakeholders ① External Stakeholders Asiana Airlines conducted the survey to understand external stakeholder interest per issue and to pick out sustainability issues. A total of 150 respondents participated in the survey and the results were studied to derive 38 issues of relevance. ②Internal Stakeholders
An additional internal employee survey has been conducted on the issues of relevance derived from media research and external survey to use the results as the basis for significance assessment.
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Asiana Airlines Sustainability Report 2015
◦ Significance Assessment Matrix 14
12.25
business Relevance
10.5
8.75
3
8.1
9.2
10.3
11.4
12.5
Stakeholder Impact
No. 1 2
3
4 5 6 7 8 9 10 11 12
13
14 15 16 17 18 19 20 21 22 23
Issues Perfect Safety Operation Improvement of service quality for customer satisfaction (ex. Enhancement of the entertainment function, Differentiated service) Corporate reputation management (ex. Advanced brand promotion and marketing) Social contribution that reflect the characteristic of business (ex. Education donation - Field trip to observe an airplane, lectures on the principle of flying, maintenance engineer’s lecture on the job) Promotion of the communication with customers (utilization of SnS, Resolving customer complaints and disputes) Interactive corporate culture (Grievance Redress Committee, Joint mountaineering) Health care for the employees Disclosure of management activities for corporate transparency Investment for aircrafts and facilities Inspection for safety management, sophistication of the system Securing the work-life balance of the employees(ex. Family-friendly management) Climate change response Global social contribution that meets the local needs Employment creation, Talent recruitment Fairness in partner company selection, Transparency in partner company evaluation Increase the use of eco-friendly aircrafts and equipments Sophistication of ethics management practice system Fairness in achievement evaluation, Reasonable reward Global network expansion (ex. MOu, strategic partnership) Supporting the capacity building of partner companies Observance of environmental laws, Taking measures against restriction (ex. Carbon emission trading) Fair and balanced competition (ex. prohibition of price rigging and monopolization) Educations for the employees' capacity building Advanced risk control for financial and non-financial management Reinforcing the soundness of corporate governance Activation of the employees’ social contribution (ex. Donation and Voluntary service) continuous communications with partner companies Securing the new growth engines (Preparing for the budget airlines) Educations for accident prevention and simulation drill reinforcement Reinforcement of the protection for the customer’s personal data
Significance 11.9 11.5 11.3 11.3 11.2 11.0 10.6 10.4 10.2 10.2 10.1 10.1 9.9 9.7 9.7 9.5 9.3 9.3 9.3 9.3 9.1 9.0 8.8 7.9 7.8 7.4 6.1 5.8 5.6 5.0
S U S TA I N A B I L I T Y D E V E L O P M E N T
Sustainability Management Structure
Asiana Airlines’ sustainability management structure is organized on the basis of the new Values of Kumho Asiana Group. Mission
Strategy
Mission
▶ Improving the quality of life all of Asiana Airline stakeholders
Vision
▶ A beautiful corporation creating the highest corporate value ▶ in each related industry
Strategy
▶ Four core management principles - Strategic Management, ▶ Human Resources Management, Ethical Management, ▶ Quality Management
Spirit
▶ Passion and Tenacity
Right People
▶ Sincere and Diligent, Studious and Earnest and Driven
leadership
▶ Taking the Initiative and leading by Example, Judgment, ▶ Decisiveness, Drive
Culture
▶ An open community where order freedom co-exist in harmony
Vision
Asiana Airlines new Values
Spirit
Right People
Culture
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Leadership
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Asiana Airlines Sustainability Report 2015
Vision - A beautiful corporation that creates the best values in the industry Vision -
Beautiful Corporation Together with Employees
Trusted by Customers
A workplace whose employees are satisfied with their work and pleased to be a member. A company that is run in partnership with the employees those who set themselves to fulfill their common missions and visions
Contribute to Public Welfare Beautiful People
Work together with all employees in the journey toward achieving Asiana vision and mission
Exert one's best for the assigned job with passion and devotion
Fulfill corporate social Provide only the best responsibilities service, quality and technology to customers, keep promises made to customers to gain their trust
Mission - Enhance life quality of stakeholders ◦ Disclose business information in a transparent ◦ manner and have active communication ◦ Create future values for sustainable ◦ growth of the company ◦ Provide the best service and act on our ◦ promises for maximum customer satisfaction
◦ Identify potential partners with competitive ◦ edge and grow together to maximize our ◦ competitiveness in service and quality
◦ Act consistently, assure quality and undertake ◦ business in a responsible manner ◦ to build trust
◦ Reinforce win-win partnership through ◦ active communication and idea sharing
Shareholders er tom s Cu
P Co artn mp er an y
Employee
Society
Improving the quality of life all of Asiana Airline stakeholders ◦ Engage both employees and customers ◦ in proactive outreach campaigns to create ◦ a ‘beautiful World’ ◦ Develop employee talents from the thought ◦ that humans are the core assets of the company * Talent Management : Train and manage the best and the * brightest who can represent corporate values
◦ Grow into a ‘beautiful Company’ that fulfills ◦ its social responsibility by carrying out ◦ initiatives based on objectives such as ◦ education donation, culture of sharing, ◦ eco-friendly management
S U S TA I N A B I L I T Y D E V E L O P M E N T
Sustainability Management Organization
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Organization CEO Financial Affairs, Environment, Education Corporate Support Dept.
Passenger · Cargo (Sales/Service)
Safety(Flight/On the Ground) Safety & Security Management, Flight Operations, Maintenance & Engineering, Operations Control
Cabin Service
Cabin Service Dept.
Passenger business Dept. Cargo business Dept.
Strategic Planning, External Cooperation, Social Contribution Strategic Planning Dept.
Domestic & Overseas Branches Passenger business Dept. Cargo business Dept.
◦ Major Committees Name
Meeting Frequency
labor Management Council
Quarterly
• Discuss how to induce collaboration and improvement for working conditions, • benefits, health, welfare
Safety & Security Review board
Monthly
• Review the company ’s safety functions from a strategic perspective, and verify • whether sufficient resources are adequately allocated • Monitor safety performance of the safety policy, safety objectives and the • effectiveness of Safety Management System(SMS)
Major Tasks
Customer Satisfaction Semi-annual, • Share service quality issues and the present actual conditions. Discuss the Improvement Committee ad hoc • controversial customer service issues and draw the improvements Internal Council for Joint Growth
Monthly
• Prevent unfair business deals and establish a self-regulated monitoring system · • Check the details on the joint growth promotion and discuss the direction of progress
Fuel Management Committee
Monthly
• Review results of energy-saving initiatives and generate plans • Develop new ways for energy saving, analyze statistics
Occupational Safety & Health Committee
Quarterly
• Develop plans to improve safety and health and prevent occupational accidents • Analyze the cause of industrial accidents and take measures against recurrence
Environment Committee
Annual
• Define targets in environment aspect and set specific goals • Discuss material issues and define plans to enhance the environment
◦ Sustainability Management Activities
2012
2013
2014
• Signed an MOu with unESCO Korea for • world heritage preservation • Raised KRW 7 billion for its spare coin • collection initiative • Accredited to offer educational outreach • initiatives • Airline of the year(Premier Traveler) • no. 1 in KCSI aviation service for 2012 • no. 1 Airline in 2012 KS-SQI • named the leader of air transport • industry by DJSI Korea (4 consecutive years) • Grand Awards for Excellence in • Sustainable Management (Ministry of • Knowledge Economy) • Grand Award for Family-Friendly • Management • Grand Award for Transparent • Management selected by 5 major • economic associations
• Awarded in China for excellent in-flight • service • named no. 1 ‘Good Airline’ • Fund raised by collecting spare coins • exceeded KRW 8.5 billion • named the best airline in fuel efficiency • no. 1 in nCSI • World Airline Award (best employee • service, best in-flight meal service for • economy passengers) by Skytrax • built its own power generation system to • prevent blackout • no. 1 in 2013 KS-SQI • Completed the construction of the 2nd • hangar in Incheon • Introduced the next generation • passenger system • named the leader of air transport • industry by DJSI Korea (5 consecutive years)
• Introduced A380 Special Edition(for the • second time) • Fund raised by collecting spare coins • exceeded KRW 10 billion • named no. 1 in Customer Satisfaction • by KCSI, nCSI and KS-SQI • Awarded as the world best customer • service and in-flight service (business • Traveler) • Awarded as the best in-flight service and • the best flight attendants (Global Traveler) • Grand Award for Marketing(2014 Travel • business Awards in China) • named the leader of air transport industry • by DJSI Korea (6 consecutive years) • named Green Product of the year • (Incheon - lA flight) • built a world standard systems for • reservation, ticketing and transport
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Win-Win Management
Asiana Airlines Sustainability Report 2015
Vision “Marching toward a beautiful future with Partners” is the win-win management vision
that Asiana Airlines has established. We have been trying to maximize service and quality competitiveness by identifying and developing partners with competitive edge. The results have been shared fairly through partnership. building an infrastructure for win-win management, cultivating good partners, interactive communications, supporting for partner companies are some of our efforts to reinforce the partnership.
Operation Program Division Win-Win Infrastructure building
Program • Operate AVEPS(Asiana Value Enhancement Purchasing System) • Agreement for fair trade and joint growth (Fair Trade Commission) • Establish and spread the ethical principle for purchase
• Partner assessment Cultivating Good Partners • Good partner grading system(Compensation based on evaluation grades, Support for events • and education) • Win-win meeting with partners Interactive Communications Support for Partners
• Day for partner communication • Grievance redress and suggestion for good practices, Surveys for partners on • Ethics Management satisfaction • 100% cash payment, Cyber foreign language course, Membership to use culture center contents
Partner Management System ◦ Partner Selection
The purchase system of Asiana Airlines consists of Requisition Department(Request and review the procurement), budget Management Department(Review and approve the budget) and Procurement Department(Conduct real procurement and payment). When selecting partners, we observe the procurement guideline to ensure the detailed information on transparent and fair procurement process. Process to Ensure Fair Procurement
Purchase Decision
Purchase Request
■ Compile requisitions for needed materials
■ Submit purchase requests
■ Finalize specifications and needs for materials based on relevant policy
to Purchase Department (AVEPS)
Partner Selection ■ General competitive bidding ■ Restricted competitive bidding ■ Designated competitive bidding ■ Private contract
The process guides purchasing department to select the most optimum partners in consideration of price, quality, deadline management, follow-up measures, good practices, recommendation by relevant departments and environmental footprints of their products.
S U S TA I N A B I L I T Y D E V E L O P M E N T
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◦ Partner Evaluation and Good Partner Program
Asiana Airlines assigns 30% weight to the corporate evaluation result and 70% weight to product/transaction evaluation result when assessing partners, and defines evaluation items under such standards. Corporate assessment looks at management environment and operational capability of a partner for the transaction, and product/transaction assessment has criteria such as price, quality, service, shipment, deadline observance, and inventory management.
Fair Transaction and Win-Win Growth Agreement On July 10, 2013, Asiana Airlines held a conference for partners where we announced the win-win statement, signing a fair transaction and win-win growth agreement with partners. Afterwards, we have been establishing an autonomous fair transaction system by setting up a contract guideline and a partner selection & application guideline. We also established an internal deliberation committee and introduced a standard contract document following the guideline of the Fair Trade Commission.
Internal Deliberation Committee for Joint Growth Internal Deliberation Committee for Joint Growth has been established to prevent unfair trade practices and introduce a voluntary monitoring system. The committee reviews implementation and progress of joint growth plans and discuss how to drive it further. Internal Deliberation Committee consists of a chairman(a procurement executive) and a secretary(a win-win cooperation team leader), two standing committee members and two temporary committee members.
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Ethics Management
Asiana Airlines Sustainability Report 2015
Organization Asiana Airlines is running an Ethics Audit Office(Ethics Audit Team) under the direct control of the CEO to fully implement ethical management.
Implementation Plan Establish ‘beautiful Culture’ Develop new Values for Kumho Asiana Maximize business Efficiency
▲ Establish Transparent Management Prevent Fraud • Error or Accident
Fraud Risk Management
Audit Planning and Execution
Stronger Employee Ethics
• Improve the audit manual and auditing skills • build fraud/corruption monitoring system • build on-going monitoring system
• Plan and execute with a focus on risk management • Monitor compliance with relevant rules • Enhance work efficiency by conducting periodic audits
• Extend ethical management education for employees • Conduct ethics surveys and campaigns • Develop employee education program
Practice Program ◦ Ethics Management Education
We are inspiring employees to aware the Ethics Management by providing various ethics management educations(cyber ethics management education, ethics management education on duty educations or promotion educations) Especially, we are providing intensive ethics management educations for new employees and executives. Ethics Management Education Results Division
General Sales Airport Maintenance
Cabin
Procurement
Operation (Pilot etc)
Educated Persons
312
208
105
73
Ethics Management Campaign Asiana Airlines has waged a self regulating campaign that bans employees from receiving money or gifts offered by business partners to establish the Ethics Management. We have held a total of 25 campaigns until 2015. During the campaign period, we regularly invite partner companies to relay our messages and hold a rally to promote ethics management. Starting from 2013, Asiana Airlines has launched campaigns that bans employees from receiving money for their lifecycle events (e.g. a funeral, a wedding, giving birth to a child, etc) from business partners.
S U S TA I N A B I L I T Y D E V E L O P M E N T
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Ethics Management Homepage Ethics Management Homepage, which has been created for real time monitoring on whether the employees are following the ethics management(social contribution activities included) regulations, consists of three sections(Ethics Management, Social Contribution, Cyber Ethics Managements center). We improved the accessibility by placing the banners, made from stakeholders’ opinions and tip-offs, onto the top of the page.
Corporate Governance
Shareholder Status Name
30.08
① unit %
12.61
④ 51.06
②
Equity Stake(%)
Owned Shares
① Kumho Industry
30.08
58,688,063
② Kumho Petrochemical
12.61
24,593,400
③ Korea Development bank
6.25
12,200,000
④ Others
51.06
99,619,902
③
6.25
The Composition of Board of Directors Type
Name Park Sam-Koo
Inside Director
Outside Director
Kim Soo-Cheon
Role
Work Scope
Overall business Supervise business management management
Recommended by
board of Directors
Note CEO(appointed on March 27 ’ 14)
Seo Jae-Hwan
Supervise external affairs
Han Chang-Soo
Supervise business management and external affairs
Finance, etc
Overall business management
Im In-Taek
Aviation & transport expert
Aviation industry advisor
Reappointed on March 31 ’ 15
Jeong Chang-young
Economy expert
Economic advisor
lee Seong-Geun
legal expert
legal advisor
Financial expert
Financial advisor
Jeong Gun-yong Kim Jong-Chang
External affairs
Appointed on March 29 ’13
Reappointed on March 27 ’ 14 Outside Director Recommendation Reappointed on March 29 ’ 13 Committee Reappointed on March 27 ’ 14 Appointed on March 29 ’ 13
Board of Directors Outside Director Recommendation Committee (3 Persons) • Purpose/Authority:Recommend outside director candidates • Chairman(Inside Director): Soo cheon Kim
Audit Committee(3 Persons) • Purpose/Authority: Audit the Management of Internal Accounting Control System • Chairman(Outside Director):In taek Im
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Asiana Airlines Sustainability Report 2015
Independence of Directors Candidates recommended by the board of directors(for inside directorship) or Outside Director Recommendation Committee(for outside directorship) must receive unanimous support from the board of directors, and biographical information of the candidates is disclosed to both shareholders and other stakeholders before a general shareholders ’ meeting in compliance with applicable laws. ◦ Major Agendas in 2014 : A total of 18 board of director meetings An approval for the financial statement of closing account on the 26th general shareholders’ meeting ▶ ’14.2.6
An approval for the establishment and management of the life-long learning center on the 2nd hangar in Incheon
Agreements on a bond trust of air cargo fare and asset-backed loans transactions
▶ ’14.7.17
▶’14.5.8
▶ ’14.10.6
’14.12.19
Extension of foreign currency loans funded by Korea Finance Corporation for facility addition
An approval for signing a financial agreement backed by Export-Import bank of Europe for one A380
Executive Compensation Status of the Compensations for Directors and Auditors Total Compensations
< unit: KRW 1K >
Type
Persons
Registered Directors
4
1,291,550
Average Compensation per Director 321,887
Outside Directors
5
252,000
48,000
Members of the Audit Committee or Auditors
3
156,000
48,000
Total
9
1,543,550
171,506
note) 1. Only the inside directors were marked as registered directors. All the three members of the Audit Committee are outside directors. The ‘Total’ note) above is a total of the registered directors(inside directors + outside directors). note) 2. The ‘Total Compensations’ is an accumulated payment until the end of that quarter. The average payment per registered director has been calculated note) simply by dividing the total payment with the number of registered directors. note) 3. The average payment per outside director or member of the Audit Committee or Auditor has been calculated in consideration of the numbers of note) retired/newly appointed directors during the disclosed period. note) 4. no stock option
Committees under the Board of Directors Purpose of Establishment
Composition
Note
Outside Director Recommendation Committee
Division
Recommend outside directors
2 outside directors 1 inside director
1 chairman 2 members
Audit Committee
Audit the inside account management etc.
3 outside directors
1 chairman 2 members
S U S TA I N A B I L I T Y D E V E L O P M E N T
Stakeholder Communication
28
Customer Satisfaction Improvement Committee, service quality monitoring Voice of Customer management system customer satisfaction survey, global talent growth project
IR Meeting & Conference, Investor conference, disclosure, annual report
Shareholder & Investor
Policy discussion regarding air transport. collaboration for domestic/foreign information exchange Domestic and foreign issue discussion, Aviation or other relevant councils
Government & Relevant Agency
Customer
Partner Employee
Telepia(corporate reporting and approval system), various employee engagement programs, corporate newsletters English brakers/In the Cabin(cabin members). club activities, internal councils
Win-win growth meetings, Roundtable meetings with supplier CEOs Internal Deliberation Committee for Joint Growth, labor consulting, Partners’ Day AVEPS(Procurement Portal System), information/idea sharing
Environment &
Society Green Corporate Council, activities for domestic and foreign councils, partnership with the government beautiful Sharing(1 Company 1 Village, unICEF spare coin collection), beautiful Classroom(education donation, beautiful Classroom initiative in China), beautiful Culture(Asiana International Short Film Festival, art sponsorship)
Employees
Employees Status The total number of employees is 10,138 and the ratio of female employees is 54.8%.
Employees by geographies
Oceania 14 Asia 318 Europe 118 China 356 Japan 191 America 253
< unit: persons >
Korea 8,888 Total 10,138
< unit: persons >
Employee Composition
2010
2011
2012
2013
2014
Male
3,910
4,112
4,356
4,485
4,583
Female
4,670
4,961
5,239
5,461
5,555
Total
8,580
9,073
9,595
9,946
10,138
Female Share
54.4%
54.7%
54.6%
54.9%
54.8%
note) 1. 10,380 persons (Male: 4,649 / Female: 5,731 / as of April 30, ’15) note) 2. the average length of service: about 10 years
(as of Dec 31, ’14)
Manpower Index(New Hiring, Career Change etc.) New Hiring
Retirement & Discharge
Physically Challenged
new Hires : 829 people 637 people(those leaving for other companies after resignation:6.3%)
72 people
Manpower Index(Female Managers, Temporary Staffs) Female Managers 2 Executives
5 Team leader 26 Part leader 2 Executives
148 Group leader
180 Cabin Manager Total : 361
Temporary Staffs 153 Office
122 Flight Operation
267 Cabin
Total : 598
82 Maintenance
29
Talent Growth
Asiana Airlines Sustainability Report 2015
Vision and Strategy Fostering global leaders for creating future values and outcomes Enhance global and creative capability, Foster an organizational culture of communication and fusion, Create learning environment in the workplace
Vision
Purpose of Education
Strategy
Initiatives Stronger global capability, Innovative corporate culture, Performance improvement
Establish leadership education system Reinforce communication program, Smart learning Grow key talents and experts, Introduce more family program Foster Infrastructure and culture, Improved global capability
Career Development Program
When hiring and positioning the employees, Asiana Airlines secures adaptability, expertise and stability by reflecting their wills. We are running a Career Development Program to recruit talented people.
• Duty-centered career development • Judge the conformity between the • capability needed from the • duty and personal capability, • develop necessary capability
Duty/ CapabilityCentered Development
Systematic Career Development
• Develop the career by • configured career path • Provide opportunities • based on the career • development system
Career Development Inspection and Modification
• update the career plan annually after testing • Manage the progress of practice issues
Talent Growth System Asiana Airlines is reinforcing the global capability education by hierarchical education(centers on the leadership pipeline of the job hierarchy), the nurture of key talents and the cultivation of the next generation leaders. basic education by position consists of essential hierarchy education, duty expertise education and organization activation education. Advanced education consists of Capability Development Class and Key Talent Class.
S U S TA I N A B I L I T Y D E V E L O P M E N T
30
The status of Employee Education Training Expense Classification
Unit
2012
2013
Total Expense
KRW 100 million
128
138
2014 138
Per Capita Expense(Full-Time Worker)
KRW 1,000
1,498
1,501
1,563
Education Expense to Sales Ratio
%
0.23%
0.25%
0.25%
Major Specialized Programs Course CS Consulting Outsourced Training for Partners
Description Service training to help employees understand customer service and service-oriented mindset Outsourced training to improve job capability of partner companies
Foreign language and Culture Class Foreign language and culture classes for self-development of employees
Remuneration and Counseling Asiana Airlines has given salary raises for high performers by their positions or duties through the annual personnel evaluation based on achievements in order to motivate employees. Through the 'Extra Promotion Point Program', we give graded promotion points to talented employees to offer a faster track for promotion. We also offer the opportunity for promotion to those who have received good grades in the Asiana MbA course. Exemplary employees and those who have made great contributions to the company are rewarded on a monthly basis or on the company foundation day(Employee Reward, long Service Reward). For Performance evaluation, we set concrete targets and offer interim assessment for feedbacks to help improve performance in the process. Asiana Airlines evaluates work performance of an employee by the annual achievements. The result of evaluation is used as reference for career development plan and rewards. Evaluation Results are also utilized as capacity development tools for an employee or the organization. Employees share the results with evaluators so as to use the evaluations as tools for determining their self-development fields.
Telepia Grievance Redress Center ▲
Difficulty Counseling difficulties, grievances Receive psychological counseling from ◀ professional psycologists
OZ
休Port Psychological Counseling
Sexual Harassment Counseling sexual harassment report, counseling
Human Rights Asiana Airlines is running a counseling center for rapid and easy settlement of difficulties and grievances. Consult with ▶ HR manager in charge
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Asiana Airlines Sustainability Report 2015
Maternity Protection Asia Airlines has been making efforts to fulfill the responsibilities and roles as a familyfriendly company that leads gender equality in employment. Some of those efforts include the expansion of female employment, fostering women with professional careers, supporting the coexistence of career and family life and creating a sound corporate culture. Maternity Protection Programs Programs
Contents
Prenatal leave
• From the diagnosis to the day before the maternity leave • up to 2 years for childbirth and childcare
Maternity leave
• 90 days in total + 30 days upon employee request • 120 days of maternity leave for multifetal pregnancy
parental leave
• Institutionalized for all the applicable employees to use
lessen the workload for the pregnant employees
• Pregnant employees placed at posts with less workload upon their request • Shorter work hours for female employees(less than 12 weeks of pregnancy or more than • 30 weeks of pregnancy)
A leave before childbirth
• Female employees suffering from morning sickness, at risk of miscarriage or premature • delivery are given the prenatal leave
Fertility leave
• Reproductively challenged employees can take a leave for fertility treatment
Miscarriage & stillborn leave
• up to 30 days of leave given in addition to the legally mandatory leave considering the health • condition of pregnant employees
Fetus checkup
• Paid 4-hour leave assured for fetus checkup
Gift for childbirth & leaves • KRW 500,000 granted per childbirth for lifecycle events • 3-day paid leave have been implemented before the legislation Childcare expense support
• KRW 203,000 granted per child aged 6 or lower • All employees are entitled
Labor-Management Communication Classification
Aviation
Office/Cabin/Maintenance
Title
Asiana Pilot union (APu)
Asiana Airlines Human Pilot union (AHPu)
Corporate labor union
Cabin union
Date of Establishment
June 7, 2000
August 27, 2014
April 30, 1999
September 23, 2013
Occupational Category
Flight Crew
Flight Crew
Office, Cabin Crew, Maintenance
Cabin Crew
Negotiations in 2014
Collective agreement renewal negotiation, Wage negotiation
-
Wage negotiation
-
Note
Head of the negotiations
-
Head of the negotiations
-
◦ Labor-Management Council
labor-Management Council was established to enhance common benefits of both the labor and the management alike by enlisting more proactive engagement and cooperation of corporate labor union and the pilot union. ✽ Periodic labor-management council meetings are held on a quarterly basis.
S U S TA I N A B I L I T Y D E V E L O P M E N T
32
◦ Occupational Safety Health Committee
The Occupational Safety Health Committee is evenly split between the labor and the management with five people coming from each front, following Article 19 of the Occupational Safety and Health Act. The Occupational Safety Health Committee is also held on a quarterly basis with ad-hoc meetings organized whenever needs arise, and operation of the committee is subject to the Asiana Airlines’ operational provisions for the Occupational Safety Health Committee. ◦ Grievance Redress Committee
The Grievance Redress Committee is evenly split between the labor and the management with five people coming from each front, following Article 26 of the Worker’s Participation and Cooperation Promotion Act. Operation of the committee is subject to the Asiana Airlines’ operational provisions for the Grievance Redress Committee. Asiana Airlines also runs a grievance and counseling center(OZ Hueport) with a professional psychology counselor in the company along with a counseling page on in-company intranet.
Safety and Health in Workplaces
Health Care System Asiana Airlines has been carrying out the health tests specifically designed for the cockpit crew to help maintain flight safety by managing their physical conditions to the optimum level. We also adopted specialized aviation medical examination and one to one customized health care. We offer year-round one to one customized health care to the employees with potential health issues identified in the health exam. Each employee’s health care continuity is maintained by the Integrated Medical Information System which contributes greatly to the prevention of disease and the promotion of health. Especially, we are concentrating on the treatment of cerebrovascular and cardiovascular disease which are caused by unbalanced eating habits and the change of living habits. We are running the year-round health care program in an effort to prevent Dyslipidemia, high blood pressure and diabetes. Employees are able to access to their health information at any time and use them for health care through the Integrated Medical Information System. The system has security measures for information protection in accordance with the related laws. Aiana Airlines offers primary care and counseling to employees for any health issues or emergencies at work. We have introduced a collaborative network with external medical institutions for consistent and seamless health care. Routine medical checkup, special checkups prior to and after new job assignment, health exams before overseas assignment or returning to job have been underway following article of the Occupational Safety and Health Act. Asiana Airlines provides comprehensive health checkup system for workers to boost employee productivity and satisfaction with better health and welfare services.
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Asiana Airlines Sustainability Report 2015
We have adopted proactive measures and are monitoring the disease outbreak information of health authorities and international organizations to prevent infectious disease. We offer vaccinations preferentially for the workers at the points of contact with customers and field workers. Recently, we have expanded the scope of vaccinations to employees’ families.
Medical Support for Customers To take sick and infirm passengers to their destinations safely and comfortably, Asiana Airlines offers medical recommendations and supports based on aviation medicine. Flight crews should be educated about first aid to prepare for the emergency conditions. Each aircraft should be provided with medical supplies. We also operates a 24-hour hot line call to cope with emergencies.
Medical Support for the Families Asiana Airlines offers medical supports for employees' families by mutual aid organization activities when employees' family members need expensive treatments(e.g. serious injuries, tumors).
Work Environment Control Danger Evaluation, which has been practiced annually from since 2013, is a series of activities to reduce the dangerousness by priority. Field Supervisors and workers can also participate to evaluate harmful factors in workplaces. We sort out risk materials that might cause reproductive harm and replace them with alternative ones by negotiations with aircraft makers. Hearing Preservation Program is underway to prevent noise-induced hearing loss. We are aiming for the identification of the cause of noise emissions and are pursuing fundamental improvements to create safe and comfortable working conditions.
ECONOMY
36 Domestic and Foreign Market Conditions 36 Passenger 39 Cargo 41 Value Sharing of Stakeholders 42 Risk Management 42 Fair Trade 43 Disclosure
Asiana Airlines will raise the corporate value through the reinforcement of Aircraft Competitiveness.
ECONOMY
Aviation Industry Overview
Passenger
36
In 2014, the overall number of passengers increased 11.4% for international flights and 10.3% for domestic flights yoy with the international cargo volume also increasing 3.7% from the previous year. International flights carried 56.78 million passengers throughout the year, which marked the highest-ever performance, buoyed by the combination of factors such as an influx of foreign visitors from China and East Asia to Korea, increment of passenger traffic by lowcost airlines, a stronger won, reduction of fuel surcharge and introduction of the ‘alternative holiday’. Domestic flights also maintained the upward trend carrying 24.65 million thanks to the factor of increase in demand such as the introduction of the alternative holiday, expansion of lCC domestic fights and increased demand for the flights to Jeju(Gimpo-Jeju flights). The international air freight marked 3.41 million tons supported by the expanded cargo flights of airlines and increased transport volume caused by export and import surge thanks to economic recovery in advanced countries. In 2014, the number of outbound Korean passengers(according to the Korea Tourism Organization’s statistics) increased 8.8% yoy with inbound foreign passengers increasing 16.8%. The number of both inbound and outbound passengers went up 12.2% from the previous year. For 2014, Asiana Airlines’ market share stood at 21.4% in domestic passenger(20.6% in 2013), 21.9% in international passenger (23% in 2013), and 24.1% in international cargo.
External Environment In 2014, the number of passengers increased 11 percent by the factors, such as increased number of seats by the introduction of new aircrafts, increasing number of Koreans who trip to overseas because of a stronger won, an influx of foreign visitors from China and East Asia to Korea by the Korean Wave and increased number of tourists who visit Jeju island. International passengers increased 11.4 percent(56.78 million people) in a year which is an all-time high performance. The Driving factors for the performance are the introduction of new aircrafts by airlines, expansion of routes, increase of flights, increased number of foreign visitors from China and East Asia by the popularity of Korean dramas, the Sochi Winter Olympics, the 2014 brazil World Cup, the Incheon Asian Games, APEC in China and introduction of the ‘alternative holiday’. Domestic passengers were increased 10.3 percent(24.65 million people) in a year. The driving factors are expansion of domestic routes by low-cost airlines, introduction of the ‘alternative holiday’, increased number of tourists who visit Jeju island and the increased demands for air travel by marketing campaigns of airlines. In 2015, aviation industry’s cost burden is expected to be reduced by stabilized oil price. International flights’ competition with foreign airlines and low-cost airlines is likely to be aggravated, but the increased demand in China and Southeast Asia will be more pronounced. Domestic flight is likely to be reduced by the KTX Honam line, but the number of passengers on Jeju line are constantly increasing.
Response Asiana Airlines reinforced competitiveness by introducing two A380s, two A330s, an A330
37
Asiana Airlines Sustainability Report 2015
and two A321s in 2014. Altea system has been deployed on november 2014 to create the passenger-airport integrated management system. Altea will contribute to the enhancement of productivity and customer service. As for long-haul flights,we expanded Istanbul flights(since March 30) and Paris flights(since May 24) to five flights per week, by adding an extra flight per week for each line, to extend long distance networks. As for short-haul flights, we added a new route to Jinan(two flights per week) in May and two new unscheduled route to Wuxi and Wenzhou. Furthermore, we expanded some routes to China(Guangzhou, Guilin, Chongqing, yancheng, and busan-Hangzhou) to sharpen the competitive edge in Korea-China routes. In consideration of profit and loss, Asiana Airlines expanded Gimpo-Jeju route following the ch anges to customer preferences and reduced some routes to Japan. Passenger sales increased by 2.8 percent(totaled 3,652.9 billion in KRW) compared to 2013 by the reinforcement of route competitiveness, introduction of new unscheduled routes and flexible supply policy. We have supported various culture and sports events such as K-Pop concerts and the Gwangju universiade to reinforce our brand image as a leading company of the Korean Wave. We promoted a marketing that lived up to customers’ expectations by ‘Dream Wings’ program(an international marketing event for college students) and the introduction of CRM system(a system that manages customer-related works such as systemization of information and reflection of information to optimize the information about customer satisfaction). In 2015, Asiana Airlines will reinforce the competitiveness by the introduction of additional A380s, the expansion of mid-to long-haul flights and profitable nonscheduled routes. Especially, we are planning to obtain the competitive edge in Chinese routes. Also, we will organize a friendly response system for customers through the diversification of sales channels and customer valuecentered marketing. Accordingly, we will cope with the complex change of external environment strategically with the growth of the company and profit-oriented substantiality.
ECONOMY
38
Major Indexes(Passenger) Market Share
< unit : % >
Classification
2012
2013
International Passenger
23.5
23.0
2014 21.9
Domestic Passenger
21.1
20.6
21.4
Performances 2012
2013
Classification
The number of People(KM)
Amount(KRW 1 million)
The number of People(KM)
2014
Amount(KRW 1 million)
The number of People(KM)
Amount(KRW 1 million)
Passenger
32,870
3,671,076
34,523
3,552,094
37,036
3,652,889
Domestic Flights
1,664
307,469
1,706
314,499
1,965
347,259
International Flights
31,206
3,363,607
32,817
3,237,595
35,071
3,305,630
Revenue share by Flight Route
< unit : % >
Classification
2012
2013
2014
Japan
20.9
18.9
16.6
China
19.6
21.0
22.4
Southeast Asia
17.8
18.3
18.5
CIS
1.2
1.4
1.5
America
6.6
6.5
6.2
Europe
2.9
3.0
3.3
Oceania
3.4
3.7
3.2
Domestic
27.6
27.1
28.4
39
Cargo
Asiana Airlines Sustainability Report 2015
External Environment In 2014, major sporting events such as the Sochi Winter Olympics, the 2014 brazil World Cup and the Incheon Asian Games were held one after another. Thus, the increased demand of uHD TVs and new smart phones lead to a boom in air cargo business. In the fourth quarter, the demand of air cargo increased rapidly by the influence of the west coast port strikes in America and the amount of freight cargos increased 3.8 percent year on year. The slide of oil price from the fourth quarter of 2014 to the first quarter of 2015 influenced the reduction of oil expenses in aviation industry. Oil price has been creeping up since the second quarter. Exchange rate shows the sign of the weakened won against the dollar with the rate increase in America just ahead. but yen and Euro is expected to be weakened. FTA with new Zealand, China and Vietnam will have an impact on the increase of air cargo. but the profitability can be worsened by fierce competitions with Middle East and Chinese airlines those which are penetrating into Korean Market.
Response In 2014, Asiana Airlines’ international cargo volume has decreased by 4.0 percent year on year(72.9 kilo tons). Accordingly, the domestic market share decreased 2.4 percent. Most of the decrement led to the increased market share of foreign airlines. Our capacity of supply has been reduced by the deterioration of aircrafts which led to increased maintenance time. Middle East and Chinese airlines’ supply has been increased relatively. but the yield, which represent the sales price of Asiana Airlines increased by 2.5 percent in dollar terms and this helps improve the profitability. Thus, the revenue from routes marked KRW 1,306 billion(only 2.4 percent decreased year on year). As for the changes in surroundings of air freight in 2015, our predictions are decline of oil price, expansion of cargo plane operations, growth in trade between countries by the economic recovery in America and increase in trade of the equipments related with smart phones and semiconductors. In the long term, air freight will show a modest increase by the decline of oil price and the recovery of the world economy with the advanced countries at the center. Considering those external factors, we selected e-commerce and temperature control goods, which represent the increase in demand, as our next generation growth engines and will expand the supply. In addition to that, we will reinforce the manpower to expand the sales of belly using the aircraft networks. To enhance business operation efficiency, we will computerize export cargo works at the airport by introducing PDAs and will introduce next generation cargo system to increase the revenue from routes through demand prediction. We will monitor the real time operation status by linking the cargo operation system and cargo homepage to improve customer service quality. The demand for cargo is influenced by global economic downturn from the financial crisis in Europe because of its sensitiveness to the changes in global economy and fluctuations in volume of freight cargoes. According to a press release from the Ministry of land, Infrastruct ure and Transport, in 2015, cargo transport maintained an increase by the decline of oil price, expansion of cargo plane operations, growth in trade between countries by the economic recovery in America and increase in trade of the equipments related with smart phones and
ECONOMY
40
semiconductors. In the long term, air freight will show a modest increase by the decline of oil price and the recovery of the world economy with the advanced countries at the center. To respond to the cargo business, which is sensitive to the changes in market, in a flexible manner, Asiana Airlines will do the best to increase sales by strategic marketing and effective operations of aircrafts. At the same time, we will apply practical route patterns and freight operations to reinforce cost competitiveness.
Major Indexes(Cargo) Market Share
Classification
2012
2013
2014
International Cargo
25.6
26.5
24.1
Performances 2012 Classification
2013
2014
The number of People Amount The number of People Amount The number of People Amount (million tons KM) (KRW 1 million) (million tons KM) (KRW 1 million) (million tons KM) (KRW 1 million)
cargo Domestic Flights International Flights
4,209
1,450,584
4,062
1,401,365
4,000
16
6,094
18
7,618
20
1,373,670 9,078
4,194
1,444,490
4,044
1,393,747
3,980
1,364,592
Revenue share by Flight Route Classification Japan Southeast Asia
2012
2013
2014
6.1
4.8
4.0
15.4
17.3
16.2
northeast Asia
8.9
9.6
8.9
America
46.2
44.2
46.9
Europe
22.2
22.8
22.6
Oceania
0.8
0.7
0.7
Domestic
0.4
0.5
0.7
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Asiana Airlines Sustainability Report 2015
Value sharing with Stakeholders
We Asiana Airlines will accomplish a consistent growth by sharing the values with internal and external stakeholders.
⑧ ⑨ ⑥
Classification
⑦ ①
⑤ ② ④
③
Cost(KRW 1,000) Share(%)
note
① Personnel expenses
763,268,236
17.3
Employee Wage, Incentives, benefit Allowance, Severance Payment, Employee benefits, national Pension, Medical Insurance
② Depreciation and intangible asset amortization
344,268,820
7.8
Tangible Assets(Aircraft, Equipment and Supplies for Aircraft, buildings) and intangible Assets(Software, etc)
③ Fuel
2,001,640,099
45.5
Jet Fuel Cost, etc.
④ Rental
465,361,076
10.6
Aircraft/Airport Office lease
⑤ Maintenance
282,214,028
6.4
Equipment and Machinery for Maintenance, Outsourced Repair, etc.
⑥ Airport
395,875,867
9.0
Ground Expense, Airport Facility usage Fee for boarding bridges, Counters, etc. Ground Passenger Expense for Airport Specialty Service Fee etc.
⑦ Interest
134,684,229
3.1
Aircraft lease, etc.
⑧ Taxes, Public Dues
9,362,006
0.2
Aircraft Property Tax, Worksite Tax, Overseas business Tax, etc.
⑨ Community Investment
5,600,899
0.1
Donation, Grants for Social Contribution, etc.
Major Cost Shares Classification
2012
Fuel Personnel expenses
< unit : % >
2013
2014
48.6
48.1
45.5
16.1
16.5
17.3
Sales office & Branches ◦ Passenger Branches
Sales : 10 domestic branches(3 offices), 74 foreign branches(30 integrated branches, 9 offices) Airports : 10 domestic airports, 38 foreign airports ◦ Cargo Branches
14 branches, 1 office ◦ Details
CIS •6 sales branches (4 integrated branches, 1 office), 1 airport branch
China •23 sales branches (11 integrated branches, 2 offices) 11 airport branches •1 cargo branch
Domestic •10 sales branches
(3 offices) 10 airport branches
Japan •14 sales branches (9 integrated branches) 6 airport branches •1 cargo branch America •6 sales branches, 6 airport branches •6 cargo branches, 1 office
Southeast Asia Europe •5 sales branches (2 integrated branches) 3 airport branches •5 cargo branches, 1 office
•11 sales branches
(3 integrated branches, 5 offices) 10 airport branches •1 cargo branch
Oceania •3 sales branches (1 integrated branches, 1 office) 1 airport branch
ECONOMY
Risk Management
42
Aviation industries are bound to have more foreign currency-denominated debts than assets and spend more foreign currency than revenue received on foreign currency. We also have a continuing demand for air fuel. Thus, the changes in exchange rate and oil price have significant impact in company's profit and loss. That is why Asiana Airlines has established and applied risk management policies for more structured and efficient risk management. A risk management committee has been established to promptly respond to external risks, having business Management Office Head as Committee Chair, and executives and team leaders from relevant departments as committee members. Risk Management Committee Classification
Note
Objective
Develop risk management strategy against external risks and define hedging tactics and the optimal hedging ratio
Structure
• Chairman : business Management Office Head • Committee Members : Financial officer, Strategy & Planning officer, Procurement officer, • practical business affairs team leader (5 People)
Period of meeting
• Periodic quarterly meetings complemented by ad-hoc meetings whenever needs arise
Agenda
• Exchange rates – currency exposure • control, Oil price - program hedge strategy, interest • rate – interest rate (fixed, variable) strategy
Activities in 2014
• 4 periodic meetings (quarterly)
To deal with the exchange rate issues, we preferentially apply internal management techniques such as matching the foreign currency income and expense through the change of the currency of settlement and/or expanding the borrowing portion of the currency in long position(income > expense). We are coping with the exchange risk through the external techniques such as forward exchange dealing for the remaining exposed currency. As for the oil price, we pay due regard to the effect of oil surcharge, an interrelation between oil price and corporate performance and the level of oil price. Then we apply ‘Program Hedge’ by buying certain portion of prospective annual oil supply consistently. With that, Asiana Airlines reduces volatility by oil price fluctuation. lastly, as for the interest, we take the equal maintenance of the portion of amount between fixed interest rate and variable interest rate as our basic strategy. but when new borrowings or aircraft rental contract takes place, the portion of amount is varied flexibly to deal with the changes in the financial market actively.
Fair Trade
Asiana Airlines has an internal fair trade compliance program in place to ensure voluntary compliance for fair trade and better competitiveness. For more rigorous compliance, we provide information on relevant laws home and abroad, and case examples of law enforcement via the bulletin board. The proactive work agreement system for fair trade has been in place in 2013 to preempt abuse of market dominance, unfair collusion and outsourcing, breach against contract terms, and advertisement agreement. In 2014, regular trainings on Fair Trading Act were provided to new hires, and overseas assignees working in relevant practices and employees in domestic and foreign branches . We gave fair trade law educations for those who work at high-risk departments.
43
Disclosure
Asiana Airlines Sustainability Report 2015
Asiana Airlines gives all stakeholders an access to corporate information, business performance and other important issues, and enhances accounting transparency through disclosure. We introduced an internal regulation system in order to be prepared against any possible lawsuits due to violation of the Capital Market & Financial Investment law and class action lawsuits, holding each team who has generated the report accountable, generating a checklist by sector to prevent omission or errors in the periodic reports and having it reviewed and approved by CEO and CFO to enhance credibility of the disclosed financial information.
Classification
Business Report
Semi-Annual/Quarterly Reports
Disclosure Scope
Corporate overview, business performance, financial information, audit opinion at the end of the business year
business performance, corporate overview, financial information, etc at the end of 1H/2H and every quarter
Disclosure Period
In less than 90 days after the business year is over
In less than 45 days after the quarterly closing date
Disclosure in ’14
1 time
3 times
Whenever there is any change that may impact business management, Asiana Airlines makes sure the change or news to be disclosed immediately. We also proactively disclose nonfinancial activities such as a voluntary compliance program for fair trade, green management information and etc.
Internal Accounting Control System Pursuant to Article 2, Section 2 and 3 of Act on External Audit of Stock Companies, which serves as the legal ground to obligate businesses to prevent any error or fraud in the financial statements and subject any non-compliance to disciplinary measures, Asiana Airlines has introduced an internal accounting control system to assure generation and disclosure of accurate accounting information and conduct on-going monitoring. The internal accounting control system holds an inspection in accordance with the corporate provisions and the business accounting standards, which closely examines accounting process, valuation of corporate assets and debts, compliance with the accounting standards regarding profits and expenses. by taking those steps, now are assured that the Internal Accounting Control System is operated by regulations.
C U STO M E R S AT I S FA CT I O N
46 Safety Management 49 Aviation Safety Support 52 Service 54 Marketing 55 Operation of Customer Satisfaction Management System 57 Awards
Taking safe, fast and comfortable flight as the highest value, Asiana Airlines offers one step ahead customer service.
C U S TO M E R S AT I S FA C T I O N
Safety Management
46
Establishment and Operation of Safety Management System Asiana Airlines has established a management system in accordance with the ICAO(International Civil Aviation Organization) requirements for the first time in Korea. When introducing the system, we laid emphasis on the prevention of safety accidents. It is an integrated safety management system that manages the safety of every workplaces including Asiana Airlines' headquarters in a systematic way. The system was built to fulfill our safety objectives and safety performance goals through the risk management process. ✽SMS, Safety Management System : A system structured to analyze various risk factors that impact flight operation in a comprehensive way to ✽SMS, Safety Management System : eliminate potential accidents and hazard elements.
Safety Management Key Map
Inspection Patrol
Safety Audit
Safety Trainings
Safety Performance Index Management
Safe Flight Assurance
Safety & Security Forum
◦ safe ◦ fast ◦ comfortable
Customer Satisfaction through optimal safety and service
Flight Operations Quality Assurance
Safety Management System Key Map ⇠ Report & Internal Review Assessment
Safety Target Setting
Target Setting
Establish Countermeasures, Action
Hazard Identification
Risk Assessment
Risk Management Process
Maintain Zero Aircraft Accidents
Reach Target
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Asiana Airlines Sustainability Report 2015
Safety Management Organizations Classification
President & CEO
Role
Note
• Report major safety and security issues and Safety & Security • SCM’s conference results to executives Review board • Approve risk management results of (SRb) • major events
• Host: CEO • Participants: Division chiefs • Function: Top decision-making body of corporate • safety issues
• Discuss decisions and action plans Safety & Security • decided by SRb Committee • Discuss Safety Performance Index (SCM) • analysis results
• Host : Head of Safety & Security Management • Participants: Executives of each division who is in • charge of safety issues, Section leaders • Function : Decide Safety Performance Index action plan
Safety & Security Management Safety & Security Officer In Charge
Proactive Safety Team
Safety Audit Team
Aviation Security Team
Safety Investigation Team
Safety Acting Group
• Discuss agendas Transferred from • SRb and SCM • Establish remedial actions for agendas
• Form: ad hoc organization • Function: solve disputes through the agreement • between teams
Organizations for Safety & Security Management
Safety & Security Review Board Chairman : President & CEO
Safety & Security Committee Chairman : Safety & Security Management Operation Quality
Maintenance Quality
Cargo Service
Cabin Quality
Airport Service
Control Support
Head of Safety & Security Management and Division Chief
operation
Maintenance
Cargo
Cabin
Airport
General Control
Safety Acting Group
Safety Training Safety Management System Training
Trainees (unit: persons) 8,178 7,763 7,239
9,729
Safety Training Plan (2015)
6,204
2010
2011
2012
2013
Asiana Airlines is instilling the awareness of safety in all the employees and providing education on accident and incident prevention. We make proactive efforts to prevent possible dangers through special education on training per area of expertise.
2014
Safety Management System Training
• Specialty trainings for safety and quality control • (accident inspection course, safety audition course etc.)
All Employees including Executives
• Managers and/or employees who is in charge of internal safety and quality control
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Annual Flight Crew Training hours and costs
1,225
1,315
1,385
1,433
Training hours
The number of the pilots 2011
2012
Classification
2013
2014
Total
2011
2012
2013
2014
Average
139,865
210,901
159,684
163,166
166,904
Per person
114.2
160.4
115.3
113.9
126
Training Cost(KRW 1 million)
8,835
8,168
9,114
9,236
8,838
Per person(KRW 1,000)
7,213
6,212
6,585
6,445
6,614
note) table above is written on the basis of Safe Flight Crew training annually conducted including on-off line training 주)
Special Trainings for Safety Operation & Investment on Training Facilities ◦ Reinforcement of Cockpit Crew Training SIM Special Training and Check for A320 pilots
• Training Hours : Special Training(0+30), Special Check(0+30) • Trainees : 349 people • Training Period : April 16 ~ June 20, 2015 • Details : Holding takeoff in low visibility Rejected landing during non-precision landing approach Go-Around on non-precision approach or at decision altitude련 내용
Crew Concept Training application to F/O initial, Transition course Application
Assign a line captain in 3 major lessons for co-pilot(Final Training, Audition, lOFT)
SIM Training Situation A cockpit team in the same environment as a real flight (flown by Captain and F/O)
Investment on Training Facilities Order A350 SIM Upgrade B747-400 SIM Upgrade A320 SIM Visual System
Scheduled to introduce SIM of next generation aircraft A350 The same panel and flight system as a real aircraft updated to new visual system, Change lED Projectors, Offer real scene training environment which is the same as the latest airport
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Asiana Airlines Sustainability Report 2015
Safety Operation ◦ CRM Training Result Total Number of Times
Attendees
Note (hours)
Joint CRM(Type A)
42
823
8
Joint CRM(Type b)
18
487
2
CRM Training Promotion
12
71
8
Refresh CRM Training
3
34
8
Family CRM
5
102
6
Program
Communication Skill-up
5
123
24
Trainer Appointment CRM Training
11
54
8
Regular CRM Training for Trainers
9
164
4
Initial CRM Training
4
73
24
Regular Common CRM Training (First half of the year)
1
1,325
E-lEARnInG
Regular Common CRM Training (Second half of the year)
32
1,372
Collective training
✽CRM(Crew Resoure Management) : A system introduced to get rid of possible obstacles of safety flight and to set a trend of respecting cockpit ✽CRM(Crew Resoure Management) : crew’s role and responsibility. CRM has contributed to the establishment of safety culture.
◦ Improvement of LOFT(Line Oriented Flight Training) Training Method (Former)
Establish 3 scenarios1) before training and apply one randomly to a cockpit team
note1) SCENARIO : A method applied to lOFT which is created by integrating materials such as, training contents of each aircraft models, seasonal changes, weather characteristics on flight areas, training results of the past that was analyzed by operation training team, information collected from external education institutes. The materials are demanded by safety operation team. Cockpit crews deal with the scenario by using CRM methods.
Training Method (Improved)
Create other types of scenarios(methods for the adaptation to lOFT2) which consist of Purpose & Operating Guide, Event Guide, Flight Operation Documents, load Sheet) instead of former ones. Trainees are only given another Operating Guide(which specifies trainer's duty, training category and guideline). To accomplish an objective and practical training, a trainer is given complete authority for the supplied Event Guide.
note 2) LOFT (line Oriented Flight Training) : Various operational and technical problems are given from a high-performance simulator. Cockpit crews cope with the problems in “real time(in a situation which is the same as real line flight)”.
Aviation Safety Support
OCC(Operations Control Center) ◦ System Configuration
The systems(aircraft scheduling system, real-time flight monitoring system, Asiana Flight Operations Control System(AFOCS), web-based voice communications system, spot management system) are shown on a large wall screen made of twelve 50-inch lCD TV screens. We collect various information from the screen and make effective decisions. To be always ready for emergency situations, OCC is equipped with uPS(uninterrupted Power Supply), automatic fire extinguishing system, and network security system.
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◦ Operation
In OCC, there are experts in various fields - including flight dispatchers, cockpit crews, maintenance engineers, load controllers, cabin crews, sales people - who are stationed at all times. To track airplanes in operation across the globe on a real-time basis moreover, these experts instantaneously control any disruption based on real-time communications with the cockpit crew through satellites or web-based communications, in order to provide best-in-class flight safety and customer services.
Aircraft Operation Control System PegaSys
Scheduling system used to decide aircraft operations such as assignment, change, delay, cancellation
FWMS
A system that monitors whether an aircraft is in normal aviation by comparing a flight plan with location, altitude, fuel consumption, flying time of a aircraft in real operation
AFOCS
Integrated control system to monitor every information related to aviation operations (such as operation information, operation statistics, weather conditions, nOTAM, aircraft, airports, crews, flight plans) at a glance
WEB-IOCS
Voice communication system to make contacts with crews or ground staffs in all domestic airports and major foreign airports by linking company radio frequency or walky-talky radio frequency to the internet
ACARS
Data/character communication system that report location, altitude, fuel consumption, operation status of an aircraft to the ground automatically. This system also supervise text communications between aircraft and the ground.
Spot management system
A control system for adjustment, change and allocation of the spots to put aircrafts in Incheon and Gimpo Airport.
note) ACARS(Aircraft Communications Addressing and Reporting System)
Management and Construction of a Weather System Asiana Airlines receives weather information from all over the world and monitors the weather conditions in real time. We have built an integrated control system(AFOCS) which is able to give warnings to the airports when the bad weather is expected and supervises internal sharing and spread of weather information to take proactive measures. Asiana Airlines has introduced a weather system from Weather Service Incorporated, an American private company that supplies forecasting information of airports and routes with precise analysis of the weather conditions, in May, 2015. We have strengthened the safety operation and customer service with proactive safety measures such as taking detour routes by monitoring bad weather and reinforcing the weather information supply for operation crews. Our new weather system supplies quick and precise information(turbulence on routes, volcanic ash, icing, dust storm, convective areas etc.) to the operation crews. Thanks to the system, we reinforced the safety of customers on the airplanes by avoiding the areas where bad weather can be expected.
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Asiana Airlines Sustainability Report 2015
Asiana Crisis Management System(ACMS) Asiana Airlines has been operating a Crisis Management System. When crisis arise, we take quick and effective measures through integrated management of related information. We offer accurate information to customers through an exclusive accident-related site(Dark Site) and the operation of inquiry calls. The system carries out quick transmissions of information and emergency call-up through emergency communication feature. Thus, the system embodies quick and precise information exchange between situation room in the headquarters and the site. Since May, 2015, Asiana Airlines has been promoting an additional development of the system in response to the proliferation of mobile devices. by supporting the access through mobile devices, we are able to make quick and accurate decision through faster initial measures and crisis management. Asiana Airlines increases the satisfaction of passengers and their families by coping with crisis dedicatedly.
Flight Planning System lido is a flight planning system which contributes to the safe and economical operations of Asiana Airlines. It helps flight dispatchers make flight plans by checking weather conditions of airports where airplanes depart and arrive and alternate airports and identifying any operational restrictions. Furthermore, it ensure safer flight operation by offering graphic data indicating severe weather conditions on routes such as turbulence and icing to cockpit crews. such as turbulence and icing. The graphic output also contains information about the altitude, the temperature and the airspace and therefore enables a clearer understanding about the air route. In addition, lIDO contributes greatly to an economical flight operation. It enables us to compare multiple routes at a time and helps selecting the optimum routes based on quantitative comparisons over fuel consumption, flight time and overflying charge. The system also makes possible to compose optimum air routes in advance by analyzing data of new routes. As of the year 2014, new short routes(entry/exit point of Russia and Mongolia) was added and we have discovered 10 economic routes in all. by utilizing those routes, we save the fuel and realize cost-effective flight.
C U S TO M E R S AT I S FA C T I O N
Service
52
Care Service ◦ Hansarang Lounge
Hansarang lounge which has been built in Incheon International Airport in 2011 is an exclusive lounge reserved for the passengers with disabilities. The lounge provides not only the resting space but also the services and it is the first of its kind made available in the aviation industry. With the internal facilities designed with lower heights, and all instructions presented in braille, the lounge has barrier-free interior for physically challenged passengers, so they can enjoy a variety of entertainment activities with ease. ◦ Care Service for the Challenged
For the passengers with disabilities in need of active and careful help to enjoy comfortable travel with Asiana Airlines, we have conducted a set of trainings for our service employees on customized catering method for the challenged passengers, by inviting experts from the groups representing the people with disabilities. In addition, by applying a special wheel chair tag on their luggage, we’re helping the challenged passengers collect their belongings quickly and correctly. We have also prepared the service infrastructure specifically designed for the challenged (e.g. special vehicles–low floor bus, Hansarang service car, invalid car) to assist their movement about the airport complex.
Airport Automation Service ◦ Internet/Mobile Check-in SVC
Asiana Airlines provides One-pass Service for domestic flight that allows the passengers to board the plane right away with the ticket printed at home. There is also an on-line and mobile check-in service available by which individual passengers can assign seats and complete the check-in via the Internet or smart phone, and later be fast serviced at a designated counter at the airport. ◦ My Flights
Asiana Airlines developed a mobile application named ‘My Flights’ in 2012 that provides various tips for traveling required on the run via centralized single channel. by simply registering a preferred flight in My Flights menu of the application, the customer can get the necessary information specified by time range. The system sends off a push alarm for useful tips regarding automated service, passport and visa, and final boarding instructions while enabling the customer to easily find such information as luggage rate of the selected route, weather condition and exchange rate at the destination, and more information about flight and airport. ◦ Self Check-in SVC
The Self Check-in Service of Asiana allows passengers to complete the check-in quickly and easily through the self check-in kiosks at airports both at home and abroad with no need for waiting. ◦ Real Time Information for Waiting Customers
Asiana Airlines has put in place a system for waiting passengers that informs domestic flight
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Asiana Airlines Sustainability Report 2015
passengers waiting at the airport for ticketing without reservation, of their wait numbers real time. This service is available in GMP/CJu domestic airports.
Differentiated Service ◦ Weihai Point Golf Express Service
Weihai Point Golf Express Service is Asiana’s one-stop service provided in alignment with a golf club to meet ◦ Service Catering to Women
Our Happy Mom service is for the moms traveling with their infants whereby they can receive various supports to minimize the discomfort they might feel during the long flight hours along with priority boarding services. Also, pregnant women can use our ‘PreMom’ service that cares for the expecting mothers from the departing airport to the destination with enhanced services and detailed attention to reduce any potential inconvenience. ◦ In-Flight Food & Beverage Service
As part of our efforts to promote Korean culinary to domestic and overseas passengers, we added ten royal dinner menus based on the advice from the Institute of Korean Royal Cuisine and offer them through first class preorder on long flights departing from Incheon. We have introduced Kimchi as an in-flight food for the first time in Korea and have also developed new fusion menus such as Steak with White Kimchi, Kimchi bacon Wrap and Kimchi Frittata to make Korean food more accessible and familiar to foreign passengers, letting Korean food known to the broader global community. Healthy and wholesome rice snacks have also been introduced to please the palate of passengers and contribute to farming communities by promoting consumption of Korean agricultural products. We are also serving a variety of luxurious western foods in collaboration with the leading Italian restaurant, la Cucina. In addition, premium wines carefully selected by Asiana wine consultant group of renowned sommeliers go very well with the dishes, making the air travel with Asiana all the more enjoyable. The excellency of our in-flight food and wine is proved by world’s major research agencies and travel magazines. In 2014, Asiana Airlines won the third prize in ‘world’s best economy class in-flight food’ category presented by Skytrax, a prestigious british research agency. We also won the third prize in ‘first class best champagne’, second prize in ‘first class best white wine’ and first prize in ‘first class wine’ presented by Global Traveler, a business travel specialty magazine.
Other Activities ◦ Cung Nhau Library of Hope
The word “Cung nhau” means “together” in Vietnamese. ‘Cung nhau library of Hope’ is a joint project of Asiana Airlines and Viet-Korea Cooperation Center to construct libraries in middle schools on rural areas of Vietnam. The project consists of programs such as painting murals on library walls, donating books and properties, meetings with students and opening
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ceremonies. We hope the students will show better academic performance by this project. Major achievements of this project are as follows. 2013 : Cu Khe Middle School, Thanh Oai prefecture, June 2014 : Thanh binh Middle School, Thanh Oai prefecture, June 2015 My yen Middle School, Dai Tu prefecture.
Marketing
K-POP Marketing Asiana Airlines started supporting K-POP from 2012 to help the zeal for Korean culture spread across the world with an aim to increase communication with customers. It entered into a business partnership with ‘M-live,’ the global concert brand of CJ E&M in February 2012, with yG Entertainment in January 2013, and with JyP Entertainment in October 2014. The partnerships offer various benefits such as discounts for artists and relevant persons on overseas concerts, excess baggage allowance and convenient booking/ticketing/boarding services.
Student Sponsorship Program ◦ Dream Wings
Asiana Dream Wings is a ‘Dreams Come True’ program designed to give a chance to turn dreams into reality and sponsor overseas activities of college youths. Starting from the first recruitment in 2011 up until the fourth selection in 2014, the program drew attention of many with a total of 7,928 students applied for participation. until now, 112 students have been selected as members and have visited Asiana Airlines' foreign destinations. In 2015, especially for the fifth year of the program, we are going to hold ‘a marketing strategy contest’. ◦ Asiana Flying Marketer
From the first recruitment in February 2014, we have been running 'Asiana Flying Marketer' as a college students' marketer program. Twelve students who are selected as a marketer ought to perform their tasks each month individually or as a member of a team for a given period. They also perform online marketing utilizing blogs and SnSs. The department in charge selects a winning work and use it as real marketing contents. Outstanding marketers are given an international trip and two of the best marketers are given scholarships. In the first half of the year 2015, students of the 3rd selection were given a trip to the major destinations of A380.
SNS Communication We utilize SnSs as mutual communication methods to set up channels with the customers. SnSs are also used as our promotion channels to propagate our major issues. Asiana Airlines,
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Asiana Airlines Sustainability Report 2015
who has the largest number of SnS friends in domestic aviation industry, offers information about travel and other aviation-related news through Twitter, Facebook, Cacao Story and Instagram. We also offer real time answer, reception of customers' praises & complaints and events for customers through SnSs.
Magic Boarding Pass ‘Magic boarding Pass’, which has been launched in January 2009, is a differentiated service program for our customers. When a customer shows Asiana Airlines’ boarding pass within
seven days from the boarding, our partner companies provide discounts or special benefits for money changing, transportation, travel, shopping and so on. In 2014, 11 partners have been newly registered, and we have 41 partners in all. Especially, we have secured partners in Japan and Hong Kong to enlarge our customers' benefits. In Japan, we set up a partnership with ‘Tokyo Monorail’ and launched Asiana-Monorail Discount Ticket. In Hong Kong, we set up partnerships with ‘Cotai Water Jet’(Ferries operating between Hong Kong and Macau) and ‘Hong Kong Ocean Park’(leading theme park in Hong Kong). We will enlarge our partnership to major destinations for customers’ global benefits.
Customer Satisfaction Management System
Asiana Airlines strives to improve service quality and innovation so as to achieve the management philosophy of ‘customer satisfaction through the safest flight and superior services’ while living up to expectations as the ‘global airline that offers the best service.’ Especially since 2007, Asiana Airlines has been rated with five stars by Skytrax, the uK airline service rating agency for nine consecutive years. We are recognized for excellent services by world's major aviation service rating agencies and travel magazines. In 2015, we are trying our best to be a reliable and beautiful company under the new motto “Strengthen Self without Stopping”. We will strive tirelessly to make a strong and beautiful company and to get customers’ trust in our efforts for safety operation and services.
Customer Satisfaction Management System Asiana Airlines’ customer satisfaction management system is intended to identify issues requiring improvement through varied assessment and analyses of its service quality, and to increase the service quality. The identifying process is performed actively by departments in charge. Especially for issues for which corrective actions were taken, we continuously monitor the outcome and customer feedback so as to incorporate customer viewpoint into service quality improvement.
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Service Quality Management System • VOC Analysis
Voice of Customer(VOC)
↗
↗
Customer Survey
• Service Quality Survey by Three local Agencies • Customer Satisfaction Survey on Asiana Club Members • Star Alliance On-line Satisfaction Survey
Improvement of Service Quality from Customer Viewpoint
↗
• Service Quality Field Inspection & Audit(Domestic & External) • Service Inspection by Employees upon their business Trip • CFI(Customer Feedback Index) Service Quality Inspection & Audit
↘
Feedback of Inappropriate Service
Sophistication of Service Quality Control Procedures
* CFI : On-Time Performance, Delay due to Maintenance, * CFI : Call Center Waiting Time, baggage Accident Rate Index
VOC Management System Asiana Airlines has introduced a new VOC system in 2013 to receive, analyze and monitor customer feedback in real time and deal with the cause of the complaints in proactive manners. Especially, we took intensive measures against VOCs which were frequently received in a specific route or season and improved VOC management system to forecast the factors in advance. We also will extend the scope of VOC collection to VOCs received through external channels and develop optimized data analysis logic and utilize it strategically on customer's opinion analysis, risk management and concept creation of new products.
Efforts to Improve Customer Satisfaction Asiana Airlines is running a ‘Service Quality Inspection Program’. Service quality experts with abundant flight experience or employees upon their business trips get aboard an airplane to inspect and manage the service quality effectively. Also, Asiana Airlines regularly conducts customer satisfaction survey with Asiana Club to identify overall service quality level and customer needs and the results are used as the basis for the establishment of service quality differentiation strategy. Asiana Airlines set up the ‘Customer Satisfaction Improvement Committee’ consisting of the top management, relevant executives and department heads. The committee members meet on a periodic basis to establish and implement customer satisfaction policies, determine how to operate customer service teams, govern the organizations, and plan and take actions to prevent recurrence of customer complaints. Furthermore, when there are issues requiring coordination of different opinions between departments on customer service criteria/procedure or immediate development of policies, the committee holds a sub-committee meeting where the department heads promptly make decisions to create a momentum for service quality improvement. Asiana Airlines discloses violations of standard or procedure on weekly basis to improve the service quality. For a service quality issue that needs to be improved in the long run, we promote a cooperation with related sections.
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Asiana Airlines Sustainability Report 2015
Awards
Asiana History of Airline of the Year
2009 Airline of the Year ATW(Air Transport World)誌
2011 Airline of the Year Global Traveler (USA)
2012 Best Overall Airline In the World Business Traveler (USA)
Five-Time Winner
2010 Airline of the Year Skytrax (UK)
2012 Airline of the Year Premier Traveler (USA)
5 Star Airline for 9 consecutive years Skytrax (UK)
Awards Record(2014~2015) Date
Awarder
• World’s best Economy Class • World’s best Economy Class Onboard Catering
Award Name
2015.6.16
SKyTRAX
• best Overall Inflight Experience in the World (8 times) • best Overall Customer Service - Airline - Ground/Call Center (6 times)
2015.1.8
business Travel Award
• best Airline On board Service (11 consecutive years) • best Flight Attendants (11 consecutive years) • best First Class Seat Design • best Wines on the Wing (Int'l F/ClS) (2 times)
2014.12.15
Global Traveler
2014.12.4
Premier Traveler
• World’s best Airline Economy Class • World’s best Aircraft Cabin Cleanliness
2014.7.15
SKyTRAX
• The top International Airlines (World’s best Airlines)
2014.6
• best Overall Customer Service Airline - Ground/Call Center
2014.1.13
business Traveler
• best Service Airline
2014.1.7
Shanghai Morning Post Oriental Morning Post
• best Flight Attendants in the World (3 consecutive years) Int’l • best In-Flight Services in the World (2 consecutive years) • best Airline Service to Asia • best business-Class Service in the World • best Airline Advertising Campaign
• best International Airline
2014.1.9
• 2015 best companies to work for in Korea(K-GWPI) 1st in Aviation Industry
2015.8.27
• 2015 Korea Well-being Consumer Index(KS-WCI) 1st in Airline
2015.8.20
• 2015 Premium brands Index(KS-PbI)
2015.7.22
• 2015 Korean Standard-Service Quality Index(KS-SQI) 1st in Aviation Industry
2015.6.25
• 2015 4th best loyalty In Korea selected by customers, brand Grand Local • Prize in Aviation Industry
Travel & leisure
Korean Standards Association
2015.4.22
Korea CEO Association
• 2015 national Customer Satisfaction Index(nCSI) 1st in International Airline • 2015 national Customer Satisfaction Index(nCSI) 1st in Domestic Airline
2015.3.30
Korea Productivity Center
• 2014 KCSI 1st in Aviation Industry
2014.10.7
KMAC
• 2014 KS-CQI 1st in Aviation Industry
2014.6.26
Korean Standards Association
• 2014 national Customer Satisfaction Index(nCSI) 1st in Domestic Airline
2014.3.25
KMAC
ENVIRONMENT & SOCIAL RESPONSIBILIT Y
60 Environment Management 61 Climate Change Response 66 Environment Control 69 Environmentally-Friendly Activities 70 Social Responsibility
Asiana Airlines will fulfill the social responsibility with Environment Management and Social Contribution.
ENVIRONMENT & SOCIAL RESPONSIBILITY
60
Asiana Airlines has introduced sustainable management into all areas of business in order to take into account economical environmental and social aspects when conducting business activities. In this day and age, not only financial factors but also non-financial factors such as environmentally sound and socially responsible behaviors can influence and impact a Company’s valuation both directly and indirectly. Asiana Airlines recognizes such implications and importance and as such pursues various activities that contribute to the betterment of the society. An aircraft needs steady supply of energy in order to be able to provide safe and comfortable flight to the passengers on board. Given how fuel is the primary source of energy for airliners, it is especially crucial for airliners to increase fuel efficiency and reduce the fuel consumption. And that is what we had thought about before the importance of natural environment was highlighted. All Employees of the Company is made aware of the importance of environmentally friendly management on all front, which is closely related to use of energy for flights from the preparation stage on the ground to actual flights in the air.
Environment Management
Asiana Airlines has placed environment management as one of the core element for the Company’s sustainable growth factor. For the quality of water and air which impacts the environment, the Company has set up and managing standards that are stricter and higher than the legal requirements. Also, we are trying to reduce waste. When it comes to responding to the various Climate Change related regulations and strengthening demands both at home and abroad regarding matters such as reduction of green house gas(GHG), Asiana Airlines is proactively making effort to reduce use of fuel in every stage of Aircraft operation and GHG. Asiana Airlines aspires to become a green airline and is committed to preserving the environment without hampering the self-purification cycle. As such, the Company has defined key strategies to implement environment policies and initiatives to minimize carbon footprints in air and water and energy in its Environment Vision. In addition, by creating an Environment Emblem of ‘The one and only Earth, as precious as our customers’, Asiana Airlines promotes awareness about the environment to all employees and customers.
Environment Policy ―
Key Strategy ―
• Minimize consumption of energy • and resources • Continue to improve environmental • impact • Proactive compliance • Win-Win management and information • -sharing with stakeholders
• Introduce the latest high efficiency aircraft and engines • On-going Fuel Saving Policy • On-going Environmentally-friendly Campaigns • Reinforce Green Company Activities • Find Improved Case through Environment (Practical Affairs) Council • Emission within 50% of Regulation Standards • Establish Voluntary Means to reduce GHG • Publish Sustainability Report • Green Campaign by Engaging Customers
Vision ―
Environmentally-friendly Airline in Harmony with nature
Corporate Support HQ
▶
Corporate Support
▶
General Administration Team
▶
Manager for each HQ
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Asiana Airlines Sustainability Report 2015
Environment Management Organization For the efficiency of Environment management, Asiana Airlines has reorganized the environment management organization to be directly under the Management Administration Division. by appointing Environment managers per Division and per Sector, any and all environment related business are monitored frequently onsite, and in case of any emergency or unusual activities, immediate action is taken and reported quickly to General Administration team to facilitate the report.
Environment Management System Asiana Airlines has established company-side environment standards in order to consistently pursue targeted direction, using ISO14001(Environment Management System, ’96.9.1) accredited to an airliner for the first time. Every year, environment impact potentials and outcome are evaluated to control and minimize impact on environment, and on a yearly basis plan and actual of environment impact are compared. In addition, the Company is conducting internal review on overall environment management and furthermore, it is receiving evaluation from an accredited institute outside of the Company at least once a year to identify and receive appropriate consultation for further improvement.
Environment Education Asiana Airlines is conducting environment related education and training as a mandatory course for its incumbents as well as new recruits. The course focuses on environment management system and vision, mid to long term plans of Asiana Airlines as well as on past endeavors. In 2014, 350 newly recruited(general, sales, airport, maintenance, etc) and 100 incumbents were given lectures on environment related courses.
Climate Change Response
Local and International Response ◦ GHG/Energy Target Management System
Since Asiana Airlines was included into GHG/Energy Target Management system in 2010, we are subjected to GHG regulations for CO2 emissions generated by domestic flights and from its worksites (the headquarters, Domestic airport and sales branches in local areas) starting from 2012. Asiana Airlines has conducted multiple fuel-reduction activities and have done our best to satisfy all required target. ◦ Emission Trading System
Asiana Airlines is designated as Emission Trading System-administrated company in 2014 and has to observe the system since 2015. At the present time, 525 Korean companies participate in ETS. The Government assigns the legal limit on the quantity of GHG to companies and allows them to trade surpluses or shortages. Asiana Airlines is conducting various fuel reduction activities consistently to reduce GHG. ◦ EU-ETS
Since 2012, global commercial/non-commercial airlines operation flights in Eu member countries all joined the Eu ETS. Asiana Airlines also joined this scheme to be assigned the
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62
emissions quotas for 2012-2020. When assigned emission right remains, we sell it and when we are short of emission right we buy it to secure the same emission right as the emission quantity of the last year. On november 2012, the ICAO(International Civil Aviation Organization) general assembly concluded to set up International standards on GHG emission and as such the system was to be applicable only for intra-European flights. As of April 3rd, 2014, upon the voting result of Eu Commission, the system is to be extended to 2016. However, regardless of the suspension, Asiana Airlines manages procedures such as GHG emission monitoring, report and verification. ◦ Voluntary Agreement for GHG Reduction
In July 2010, Asiana Airlines signed a voluntary GHG reduction agreement with the Ministry of land, Infrastructure and Transport to set the GHG reduction target by renewing the agreement regularly and works to reach the target. For 2012, the year for the 2nd voluntary agreement renewal, the company was required to improve its fuel efficiency and exceeded the target far above to have the honor of being selected as the airline with the highest fuel efficiency. In 2014, Asiana Airlines signed 5the agreement and set its target to improve its international line fuel efficiency by 2.0% against the baseline year. because the method of target setting in international treaty is expected to change from fuel efficiency to quantity of emission, we prolonged the period of agreement from one year to two years.(January 1, 2015~December 31, 2016)
The quantity of GHG Emission and Reduction Activities ◦ GHG Emission Control
Asiana Airlines’ annual GHG emission is based on the volume of fuel used in both domestic and international flights and Data of overall emission has been verified by external auditing bodies for Data credibility. GHG Emission Trend Classification
2010
2011
2012
2013
2014
Aircraft Emission(tco2)
5,020,748
5,371,480
5,604,703
5,995,446
6,180,346
◦ GHG Reduction Activities
Asiana Airlines has set up ‘Fuel Management Committee’ as a way to concentrate its fuelmanaging capability and to coordinate and promote inter-team opinions and information exchange to optimize communication for better business decisions. The committee opens a meeting more than once a month. In 2014, Asiana Airlines launched a campaign which was named ‘Green Flight 3’(Activation of Short-Cut, Green Taxi, Minimum APu usage) and is carrying out the fuel reduction activities from the steps of preparation before takeoff to the maintenance after landing.
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Asiana Airlines Sustainability Report 2015
Aircraft GHG Reduction Trend
< unit : 1,000 ton >
Classification
2010
2011
2012
2013
2014
Amount of CO2 Reduction
79
83
105
120
125
Activities for GHG Reduction
Economic Flight, ● Procedure Improvement
19%
● Optimal Fuel load Management
19%
7% Engine Washing ●
13%
Activities for GHG Reduction
2% 1%
● Payload Weight Accuracy
● Center of Gravity Placed in the Aircraft Rear ● Minimum Over-fueling
10%
10% Weight Management ●
19%
● Minimum APu usage ● Fuel-Saving Flight Procedure
We are implementing a series of fuel conservation activities such as optimized flight planning and operation procedure for fuel saving and economical flight. Optimal flight planning includes reasonable fuel load based on statistical analysis of flight history data, and selection of most economical route from various possible routes in the planning phase. Flight procedures for fuel saving and economical operations refer to keeping economical altitude, and short-cut flight whereby the shortest airways are taken as a route depending on flight conditions.
ENVIRONMENT & SOCIAL RESPONSIBILITY
64
◦ Engine Water Wash
Asiana Airlines has been doing engine water washes. We introduced a state-of-theart engine washing equipment manufactured by lufthansa. Engine cleaning increases the engine compressor efficiency, improves air flow, reduces green house gas (GHG) emissions, and enhances fuel efficiency. Engine water wash is being conducted in consideration of the aircraft operation plans and it was performed 374 times in 2014 and 392 times are planned in 2015. Year
2010
2011
2012
2013
number of Times
267
290
327
350
2014 374
Reduced Cost(KRW 1 million)
3,850
3,503
4,324
4,347
4,928
◦ Weight Management
Weight management activities to improve fuel efficiency include application of lightweight carts, center of gravity placed in the aircraft rear, usage of lightweight containers and weight reduction of tax-free books in the airplanes. Optimal weight management is being conducted by placing the center of gravity in the rear part of the aircraft, in a way that reduces fuel consumption and ensures flight safety. ◦ Electric Car Operation
To reduce the amount of GHG generated in the process of support operations such as ground aircraft maintenance, Asiana Airlines has introduced electric vehicles for maintenance support in the airport area. At the present time, a total of 10 electric cars are in service. Vehicle Model
Number of Units in Service
Operating Places/Teams
Change (Introduced in October, 2011)
7
6 at Incheon Airport 1 at Gimpo Airport
Electric Car (Renault Samsung) (Introduced in January, 2014)
3
1 for Incheon Safety Management Team, 1 for Gimpo Safety Management Team, 1 for Incheon Cargo Service branch (Incheon Passenger Terminal, Gimpo Passenger Terminal, Incheon Cargo Terminal) * Charging Stations: Three Places
Environmentally-friendly Flight Asiana Airlines is running an organization consisted of experts to concentrate on fuel reduction and fuel efficiency improvement, and have established management items for monthly based performance management. Asiana Airlines has set up ‘Corporate Fuel Management Committee’ to encourage the participation of all the employees. The committee shares the team(or division) performance and draws improvement methods or study new reduction methods through monthly meetings. 'Economic Route Creation Task Force' in the committee searches for a new economic route consistently. We also share information about in-flight route distance reduction for a quick application to the field. In 2014, we focused on three types of eco-friendly operation. The first is Observing one Engine Taxi-in procedure when moving on the ground after the landing. Secondly, inducing the use of Ground Power unit(GPu) instead of shortening the time to use Auxiliary Power unit(APu) on the ground. Thirdly, And lastly, using a route shorter than the designated one in-flight by requesting to air-traffic control agencies. In 2015, we will put in two additional
65
Asiana Airlines Sustainability Report 2015
items which are setting up an optimized flight plan and drag reduction and will start applying them from September. In 2014, Asiana Airlines has introduced a policy to provide three percent of operation flight fuel as compensated fuel which is a international standard. The policy includes advanced flight monitoring and safety operation scheme to select an alternative airport in the route. We have our aircraft engines water washed twice a year to get rid of fine dust and stickum. That helps improve engine performance and save fuel. In 2015, Asiana Airlines is also going to have its aircrafts' body washed. As for A321-200, which will be introduced in 2015, we will reduce between three to four percent of fuel by installing Sharklet, which reduces drag. In 2014, for the effective management of weight, we reduced the number of unused seats for crews in cargo airplanes. We also installed removable foot rests in A330 and removable oven on domestic routes. In 2015, we will change the material of tax free magazines to reduce weight and will carry out placing the center of gravity on the rear of the airplanes on Incheon-Europe route to improve fuel efficiency. ◦ Fuel Reduction Activities In 2014 • Reduce route distance, Reduce the time • spent using auxiliary power unit
s
• Select the type of airplane and route and Recheck two hours before departure
Fuel Reduction Activities
W ate rW ash E ngine
• Operate Economic Route Task Force • Analyze and search optimized • economic routes
p rou nG Operate Discussio
• Operate Corporate Fuel • Management Committee • Adjust opinions with • head office/division monthly, • take charge of • decision-making
Flight P Load lan t Am o M ou n
ize im in Gaps t
Flight een n r t G aig en mp a
Imp lem 3C
• Select and reward superior • pilots and proposers
• Minimize weight gaps between flight • plan and final loading(passenger+cargo) • to save fuel
Get rid of fine dust and stickum in the engine to improve engine performance and save fuel
Effi cien licy t Fuel Loading Po
• Introduce a new international standard policy to • provide three percent of operation flight • fuel as compensated fuel
◦ 2015 Plan
Fuel Reduction Target
Reinforce the management of existing reduction items & Develop new reduction plan
• Select optimized short distance alternative airport
Reduce Drag
Install Sharklet which Reduces drag by vortex occurred at the edge of wings to the A321-200 to save 3~4% of fuel
Introduce Additional New Fuel-efficient Aircraft
Introduce additional 3rd and 4th A380
place the center of gravity on the rear of an airplane
Fuel saving gets easier when placing the center of gravity on the rear of an airplane Applied preferentially on Europe routes
Hold Green Flight 5 Campaign (September~ November, 2015)
Water wash engines and bodies. Develop optimized flight plan for route distance reduction, Green Taxi, Reduce APu usage time
ENVIRONMENT & SOCIAL RESPONSIBILITY
Environment Control
66
To minimize environmental impact unavoidably arising out of its business operation, Asiana Airlines has set the target of keeping its pollutant emissions within 50% of the legal limit. To meet the target, the company is applying optimal green technology best suited for each process, and its actual pollutant density remains lower than 25% of the legal limit. Recognized for its strenuous pursuit of green management including minimization of impact on environment through efforts to improve environment, Asiana Airlines has been designated as ‘green company’ by the Ministry of Environment. As for controlling environmental issues, we apply more stringent standards of our own, apart from regulatory requirements. Thanks to the efforts, Asiana Airlines has had no environment accidents for 15 years in a row from 2000 to 2014.
Energy Consumption Control Asiana Airlines’ energy consumption slightly rose year-on-year in 2014 due to the growth of our business. Electric power is usually used for working activities in buildings. lnG is primarily used for heating and cooling but it is also consumed for boilers and cooking. The Incheon worksite(youngjong Island) uses steam and electric power supplied by Incheon Airport Energy(a combined heat and power generation plant) nearby because of geographical proximity. Water Usage Incheon District Asiana Town
Gimpo District
2012
2013
2014
< unit : ton >
Classification
2012
2013
2014
Asiana Town
99,236
98,057
99,707
Gimpo District
22,990
22,897
16,064
Incheon District
76,481
88,871
106,569
Power Usage Asiana Town Incheon District Gimpo District
2012
2013
2014
< unit : kwh >
Classification
2012
2013
2014
Asiana Town
20,566,732
20,953,062
Gimpo District
4,472,010
4,112,382
3,711,734
Incheon District
11,320,805
13,470,018
14,914,237
20,117,541
LNG Usage Asiana Town
Gimpo District
2012
2013
< unit : m3 >
Classification
2012
2013
2014
Asiana Town
684,239
679,980
629,079
Gimpo District
402,101
422,034
333,629
2014
Steam Usage Incheon District
2012
2013
2014
< unit : Gcal >
Classification
2012
2013
2014
Incheon District
3,868
4,279
4,103
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Asiana Airlines Sustainability Report 2015
Water Most of the wastewater generated from business activities goes to wastewater treatment facility. Through strict treatment process, Asiana Airlines observes regulations required by law. We entrust all the high density wastewater to the specialized company to ascertain whether the specific harmful materials are treated properly. We provide active investment plan for treatment operation equipment and reflect it in our operation. Inflow and outflow in the wastewater treatment facility is monitored everyday. besides the regular measurement, we check the wastewater treatment by installing the TMS in the 1st and 2nd hangar in Incheon. Water Pollutants < Density : mg/l >
Classification Gimpo Hangar
1st Hangar in Incheon
Legal Limit
2010
2011
2012
2013
2014
COD
130
13.61
13.46
8.57
12.73
14.4
SS
120
11.57
20.06
11.55
13.8
9.28
1,052
1,324
1,270
959
783
2.78
2.55
3.38
2.17
2.11
Water Flow(㎥) COD
20
SS
20
Water Flow(㎥)
1.46
1.59
1.29
1.49
2.04
1,566
1,203
1,028
807
599
※ 2nd Hangar in Incheon(as of 2014) *COD: 1.89 mg/l, SS: 1.79 mg/l
Air Air Pollutants are mainly generated from aircraft maintenance. Asiana Airlines established pollution control facilities in each maintenance site for the efficient control of pollutants and the improvement of site environment. We monitor emission control system daily(also monthly and ad hoc) to manage the legal limit of pollutants. Aiana Airlines confirms whether the facilities work properly through the regular measurement to minimize the emission of pollutants at the site. Air Pollutant Emissions
< unit : Kg >
Classification
2010
2011
2012
2013
Gimpo Hangar
161.76
127.31
202.78
81.40
2014 84.14
1st Hangar in Incheon
389.05
408.1
355.10
307.73
603.97
2nd Hangar in Incheon
-
-
-
-
181.32
note) increased pollutant emissions at the 1st Hangar in Incheon in 2014 was due to the increase of heavy maintenance of aircrafts(sanding, painting etc.)
Waste Asiana Airlines makes sure that different kinds of wastes are not mixed. We sort them out according to related teams and each team is responsible for observing the waste management law and internal regulation of waste treatment process. To minimize the waste generated in workplaces, each department set an annual target and performs monitoring consistently according to the reduction plan. Maintenance process generates certain kinds of wastes by nature. We examine whether they are recyclable and if they are deemed safe,
ENVIRONMENT & SOCIAL RESPONSIBILITY
68
advise employees to recycle them. Asiana Airlines is raising its recycling rate gradually. Recyclable wastes are sorted again so as to reduce the incineration and the cost incurred. Waste Amount and Recycling Rate Classification
2010
2011
2012
2013
2014
Total Waste(tons)
4,913
5,464
5,601
6,152
6,227
Recycling (tons)
3,350
3,644
3,819
4,989
5,024
Recycling Rate(%)
68.2
66.7
68.2
81.1
80.68
Noise Asiana Airlines applies nADP of ICAO(International Civil Aviation Organization) for the airports which have noise reduction regulations. Airbuses and boeings that we possess(50, 34 airplanes each) meet the standards of ICAO AnnEX 16 Volume 1, which prescribe the grades of aircraft noise. * nADP: noise Abatement Departure Prodedure
Chemical Materials Asiana Airlines has built an inventory of chemicals it handles and keeps to improve chemical material handling standard according to the 'Chemical Material Control Act' and 'Chemical Material Registration and Evaluation Act', which have newly been applied since 2015. We offer regular educations for the departments that handle chemical materials to raise awareness of related laws. As for Explosive or inflammable materials, we perform active examinations to find alternative ones. We have introduced AMIGOS-II system that keeps the record of chemical materials for the strict management of the 'special material' prescribed by Industrial Safety and Health law. For the sites which handle chemical materials, Asiana Airlines has established emergency training guideline. We confirm whether there are disaster protection equipments in workplaces to prevent secondary environmental incident. When discarding chemical materials that are past their expiration date, we let the related team examine the Material Safety Data Sheet(MSDS) about the materials because there are possible dangers (a fire etc).
Green Purchase As the interests on environmentally-friendly goods gradually rise, Asiana Airlines tries to use them evenly in applicable areas. We plan to purchase green products to the extent of not hurting safety flight. < unit : Item - Items, Spend - KRW 1 million >
3,153
3,539
3,668
Green Products etc.
< unit : KRW 1 million >
Spend 2012
2013
Classification
2014
2012
2013
2014
Item
Spend
Item
Spend
Item
Spend
32
3,153
31
3,539
27
3,668
69
Green Campaigns Asiana Airlines runs a range of programs to engage customers as well as its employees in Green-Friendly Campaigns. The company waged a campaign to promote green flight and conducted corporate fuel reduction campaigns that was appealed to the general public. ◦ Participation in Creation of Eco-Park
Since 2012, Asiana Airlines has been planting trees at an eco-park built on a reclaimed land near metropolitan areas which takes place in Arbor Day every year. Following 2013, its employees took part in the event organized by Metropolitan Area landfill Site Management Corporation in 2014. It will endorse creation of the eco-park as well as environmental preservation based on ongoing participation.
김포 ⇨ 하네다
출
량
147㎏
김포 ⇨ 북경
출
량
858㎏
인천 ⇨ 파리
출
량
951㎏
인천 ⇨ LA
기후변
135㎏
탄소배
량
탄소배
출
탄소배
◦ Greenhouse Gas Reduction Program and Carbon Labelling
탄소배
EnvironmentallyFriendly Activities
Asiana Airlines Sustainability Report 2015
화
대응
60㎏
김포 ⇨ 제주
All employees in Asiana Airlines should identify the volume of carbon offset as a way to offset greenhouse gas generated by Asiana flights for their business trip. In 2014, 3,157 tons of greenhouse gases were offset and a total of 18,048 tons of the gas has been offset from May 2008 through the end of 2013. based on its commitment to greenhouse gas reduction and building of greenhouse gas database, the company started to disclose information on emissions of greenhouse gas generated in its production process, earning carbon labelling on flight routes from Korea Environmental Industry & Technology Institute(KEITI). The Gimpo-Haneda route was the first to be accredited in 2009 and up until 2013, a number of routes including the Incheon-los Angeles route have been accredited. Gimpo-Jeju route accreditation was renewed In 2014.
ENVIRONMENT & SOCIAL RESPONSIBILITY
Social Responsibility
70
Asiana Airlines will fulfill its social responsibility consistently engaging customers and employees to create a beautiful world where all of us across the globe can lead a happy and fulfilling life.
beautiful Corporation
▲
Beautiful Sharing
Social Responsibility • Distribution + Genuine Commitment • Genuine Contribution, Spread Culture of Sharing
Beautiful Classroom
Beautiful Environment
Donation for Education • Dream + Knowledge
beautiful People
• Children & youth
Environment Management • Environment + Future
• Investment for the Future
• lead Environmental Protection
Develop Culture • Sensitivity + Spirit
Beautiful Culture
• Preserve Cultural Properties, Mecenat Sponsorship
Beautiful Sharing Asiana Airlines is reaching out to our neighbors in need with compassionate ‘beautiful love’ through a range of social responsibility initiatives such as unICEF spare coin collection, Asiana bazaar, 1 Company 1 Village, Meal of love, Salary round-off donation in combination with overseas campaigns such as support for the Aeta tribe of the Philippines, love House project in Vietnamese communities suffering from extreme poverty. ◦ UNICEF Spare Coin Collection
Asiana Airlines has been working with the Korean Committee for unICEF (united nations Children’s Fund) to jointly carry out the ‘Change for Good’ campaign. The campaign was launched to prevent spare notes and coins in foreign currencies at the end of customers' journey from not being spent and discarded. The campaign was started on international flights in 1994 and has grown into the most representative social campaign waged by Asiana Airlines. In 2014, the accumulated amount of money exceeded KRW 10 billion. < unit :100 million KRW >
Accumulated Amount of Money
1994
1998
2002
2006
2010
2012
2014
1.6
10
20
30
50
70
100
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Asiana Airlines Sustainability Report 2015
◦ Asiana Bazaar
Asiana Airlines holds a bazaar where all employees donate one item per person and participate by selling food and goods collected during the campaign. The bazaar has grown beyond a corporate event to become an inclusive community festival that invites the underprivileged and entertains participants to help them enjoy their time together. The money was spent to support children in troubled families, the physically or mentally challenged, and the campaign to preserve the world’s cultural heritages. ◦ 1 Company 1 Village
The senior executives and employees of Asiana Airlines have been visiting Sanchoeul village in Hongcheon, Gangwon Province, the sister village of Asiana Airlines, twice a year with their family members for volunteering works since 2006. Asiana has also signed an agreement with the village to buy germinated brown rice for the first-class in-flight meals, promoting the specialty product of the community and developing its economy, and to grant scholarship to students from troubled families in Hongcheon every year. Thanks to Asiana Airlines bringing much benefit to Sanchoeul village, the 1 Company 1 Village campaign has been named as the best practice receiving the ‘Rural Community Contribution Certification’ award and ‘The Order of Industrial Service Merit’ from the Ministry of Agriculture, Food and Rural Affairs in 2014. ◦ Meal of Love(愛)
Since 2007, Asiana people have donated a portion of their salary to support a campaign that provides lunch for low-income family children living in Gangseo district. Since 2011, Asiana Airlines delivered breakfast to the children in need. Meal of love was organized jointly with Seoul Gangseo District Office of Education and Community Chest of Korea with the aim to provide breakfast to low-income family students. Asiana Airlines is actively making a contribution to this drive as the one and only private corporate sponsor. ◦ Moneybox of Love
The Moneybox of love campaign was originally launched by airport service staffs in 2008. Starting from 2011, the campaign has grown to an enterprise-wide scale that encompasses all of Asiana offices both home and abroad. The money collected by our employees during a year is spent for various social outreach activities. ◦ Salary Donation
Employees of Asiana Airlines have participated in the donation campaign called ‘Salary Round-off’ since 2006. They set aside money less than KRW 1,000 from their salaries and donated the money to the fund for neighbors in needs. Since 2014 the campaign has revised to raise money from employees( KRW 1.000 each, from their Salaries). Asiana also provides 100% matching grants to support the employees’ charity efforts. The fund is spent helping out more disadvantaged people in our communities, that includes providing breakfasts to low-income family children and giving scholarships for the grandparentgrandchildren families. in order.
ENVIRONMENT & SOCIAL RESPONSIBILITY
72
◦ Social Work Volunteering in Relay
Asiana people participate in social volunteering campaigns in relay. We visit Pinetree Home, Gangseo Children’s Center, boocheon Hyerimwon and yangcheon Migrant Workers’ Center to spread the culture of ‘beautiful Sharing’ across our communities. Since 2014, we added 'Home Repairing of Hope' campaign to help improving the residential environment of lower economic class. ◦ On Board Outreach Initiative
Starting with Save the Children’s ‘Knit One, Save One’ campaign that had been well received by passengers in 2011, Asiana Airlines has launched a series of monthly campaigns to involve more customers. Asiana Airlines formed Onboard Outreach Team in charge of designing onboard social contribution programs to invite long-haul passengers to a good cause. ◦ Supporting for Aeta Tribe in the Philippines
As part of the 1 Company 1 Village campaign, Asiana Airlines established partnership in 2011 with the Aeta village and has been supporting them consistently with KOICA. Asiana people visited the village to build water pumping facilities, improved houses, public safety facilities and offered education about advanced agriculture and stockbreeding to help them to become more self-sufficient. ◦ Love House in Vietnam
The corporate volunteering club for flight attendants, OZ-unICEF, has built houses for extremely poor families in ben Tre Province under the partnership that goes back to 2004. In 2013, the 42nd love House was successfully completed and donated to the community with money raised by club members. To show Asiana fully backs the good cause, it offers monetary support and also flight tickets to Vietnam once a year to let club members see the impact they’ve created for the community in person.
Beautiful Classroom Asiana Airlines is working hard to open a brighter future for our youths. ‘ Saekdong-narae Class ’ has been opened with the company club ‘Asiana Dream Catchers’ (education donation) visiting schools and giving lectures on career in the aviation industry. ‘Dream Festival’ is, especially, the largest educational event in Korea that combines cultural performances with career lectures. Asiana has also designed other educational programs to find the right career path for students interested in the aviation industry. ‘beautiful Class’ of Asiana Airlines is an initiative to help youths home and abroad unlock their potential and achieve their dreams.
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Asiana Airlines Sustainability Report 2015
◦ Saekdong-narae Class
Asiana Airlines has formed a education donation group consists of lecturers who are experienced in their career fields to visit schools and give career lectures to students interested in aviation professions. In recognition of our hard work, we were awarded 'Education Donation Grand Prize' by the Ministry of Education in 2014. ◦ Dream Festival ‘Dream Festival’ is the largest educational event in Korea that combines culture and art performances with a career class to help relieve stress of students pressured to maintain good academic performance all the time, and fulfill their curiosity about their potential careers. Sponsored by Seoul Foundation for Arts and Culture, ‘Dream Festival’ first took place in the yeongdongpo Art Hall in February 2013. The second festival was held in Guro-Art Valley in December 2013. In December 2014, the third festival was held at the national Theater. ◦ Beautiful Class for China
Asiana Airlines, as the airline that has the widest Korea-China flight network, set off to
Beautiful Classroom Project in China No.
School Name
Donation
3
The 5th junior high school in Tumen city, yanji 40 computers, 1,000 books, 1 piano, 1 beam Ethnic Korean school in Jiutai city, projector, etc Changchun 50 computers, 1,000 books, 1 piano, 9 beam banyuewan primary school in Wei Hai projectors, school bags/stationery items, etc
4
laotunhuyzhen central primary school in 42 educational computers, 1,000 books, 1 piano, 1 Dalian beam projector, 1 photocopier
5
Mupingqu Dayao junior high school in yantai city
51 educational computers, 1,000 books, 1 piano
6
yongfeng primary school in Pukouqu (浦口區), nangjin city
36 educational computers, 1,000 books, 1 piano, 15 Guzhengs(Chinese Zither)
7
Fengdong Xincheng Cheliang primary school in Xishensinqu, Shaanxi province 61 computers, 1,000 books, 1 piano, etc
8
yueyahe primary school in Hebeiqu, Tianjin city
5 multimedia sets, 12 computers, 1 piano, 1,000 books and soccer team uniforms
●7
9
Xiangganglu primary school, Qingdao city
49 computers, 1 piano, 1,000 books
●8
10
Dahu secondary school, Changsha city
63 computers, 1 piano, 1 beam projector, basketball team uniforms
11
Ethnic Korean primary school, Wuhan city, Harbin
30 computers, 1 lED display, 120 desk-chair sets, 1 educational entertainment set
12
Ruixing primary school in Shenzhen city 50 computers, 20 electronic organs, 1,000 books
13
Shiyang primary school, Dujiangyan, Chengdu city
Construction of 3 volleyball courts, 1 basketball court, nets, goal posts, 1 piano, 500 books, 20 volleyballs, 43 volleyball uniforms
14
yucai primary school, Qixing district, Guilin city
11 computers, 2 pianos, 4 multimedia sets, 500 books
15
Chen Jingrun middle school Dijing branch, 49 computers, 1,000 books, 1 piano beijing
16
Quianfeng primary school, Guangzhou
1 2
20 computers, 1 beam projector, 1 air conditioner
17
Ertang primary school, Chongqing
30 computers, 2 lED displays, electronic book system
18
Xuesongru primary school, Shenyang
60 computers, 1 piano
19
Sanyang school, Huangshan
5 computers, 1 piano
20
Wanping school Shanghai
1 piano, 10 sets of multimedia system, 10 blackboards
21
Caihe experimental primary school, Hangzhou
45 computers, 1,000 books, 1 piano, 200 model airplanes
● 11
● 1
●2 ● 18 ● 15 ●4
5 ● ●3 ● 9
●6 ● 19 ● 20 ● 21 ● 17
● 13 ● 10 ● 12 ● 16 ● 14
ENVIRONMENT & SOCIAL RESPONSIBILITY
74
establish a sister network of schools to implement the ‘beautiful Class’ project across China in 2012. The project is about forming partnership with Chinese schools in need to donate necessary educational materials and supplies. Raising the fund with KOICA, Asiana Airlines donated computers, pianos and other learning equipment to schools in seven Chinese cities including , beijing, Guangzhou, Chongqing, Shenyang, Huangshan, Shanghai, Hangzhou , and gave lectures when flight attendants of Asiana visited the schools themselves in 2014. From 2012 to 2014, Asiana gave support to 21 Chinese schools. The campaign will be continued in 2015 to cover more students in China. ◦ Flight Attendant Class & Global Manner School
Asiana Airlines offers a flight attendant class to high school students who wish to become flight attendants in the future. Participating students can experience what it’s like to be a flight attendant in the Asiana Training Center. For high school students wishing to get a job instead of going to college after graduation, Global Manner School has been opened to teach good manners for job interviews and image making.
Beautiful Earth We engage ourselves in a wide range of environment improvement initiatives such as installing eco-friendly solar street lamps in the cultural heritage sites all over the world, cleaning river across the country (‘Forriver Forever’) and etc. ◦ Eco Solar Light
One solar energy street lamp installed by Asiana Airlines can reduce 203kg of CO2 per year compared to an incandescent light bulb. The impact is equivalent to planting 82 pine trees. In partnership with KOICA, Asiana Airlines has installed 51, 41 and 26 solar-powered street lamps in Cambodia, Vietnam and Jakarta respectively. We build solar-powered street lamps near the world’s cultural heritage sites of these countries to safeguard both invaluable culture and environment. ◦ Forriver Forever
Asiana Airlines clean the areas along major rivers (Han River, Keum River, yeongsan River, Kumho River, nakdong River) and riverbeds of Korea. Championed by Asiana people working at domestic offices and airports, the green initiative organizes activities such as picking up garbage, pulling out weeds and planting flower to make our rivers cleaner.
Beautiful Culture ◦ AISFF
Asiana Airlines has organized AISFF(Asiana International Short Film Festival) since 2003, which marks its 12th anniversary in 2014. The festival was launched to encourage production of short films and independent films, and give more chance to talented movie directors who get relatively less attention from the public. AISFF is the first and one of the biggest international short film competition festival in Korea. AISFF has become stable and
75
Asiana Airlines Sustainability Report 2015
fruitful by consistent hosting and support. ◦ Asiana Carole
In 2014, Asiana Airlines selected physically challenged musicians with talents and produced first Asiana Carole entitled 'Christmas with you' to share the music with all its employees. ◦ Guardian of Cultural Heritage
Asiana people and their families visit four royal palaces of Korea(Deoksu, Gyeongbok, Changdeok, Changgyeong) and Jongmyo(a Confucian shrine for the Joseon Dynasty) on a regular basis having a tour guided by cultural heritage experts and cleaning the areas to better the environment. ◦ Nurturing Music Prodigies
Asiana Airlines sponsors a musical instrument bank which rents out instruments to music talents to find and develop prodigies of Korea. ◦ Culture and Art Sponsorship
Asiana Airlines offers sponsorship to those who have made great contribution to development of culture, art and sports of Korea and raise the country’s standing on the global stage. We are trying to carry out our social responsibility through various Mecenat activities.
76
APPENDIX
77 Financial statements 86 GRI G3.1 Index & Alignment with 86 ISO 26000 90 Organization Chart 91 Third-Party Assurance Report
77
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Consolidated Financial Statement
< Unit : KRW >
27th Period
26th Period
25th Period
Assets Current assets
1,328,336,817,242
1,466,671,685,608
1,064,537,579,653
Cash and cash equivalents
262,869,886,514
498,919,161,282
162,787,126,531
Short-term financial instruments
306,681,020,000
204,166,780,000
73,633,960,000
Financial assets at fair value through profit or loss Trade receivable
16,074,709,900 388,085,788,016
383,522,272,645
424,959,115,021
Other receivables
29,441,044,713
32,299,738,477
27,609,992,058
Accrued income
19,265,792,347
20,582,520,140
23,036,290,392
792,616,817
23,637,085,863
22,407,504,350
Advance payments
46,701,171,670
58,387,141,441
106,317,989,043
Prepaid expenses
69,892,777,670
61,478,468,446
59,061,088,052
2,040,195,087
2,416,539,879
Short-term loans receivable
Liquidity available-for-sale financial instruments
1,822,908,411
Prepaid taxes
2,505,729,470
Current tax assets Inventories Other current assets Non-current assets Long-term financial instruments
1,162,530,006
1,780,827,381
287,861,217
182,764,794,508
178,755,248,735
161,225,835,022
276,047,200
1,102,246,111
794,278,088
6,883,260,955,580
5,545,335,886,411
5,021,824,272,891
227,500,000
34,500,000
34,500,000
Available-for-sale financial assets Investments in jointly controlled entities and associates Long-term loans receivable
320,637,663,502
278,234,247,559
254,256,905,361
382,871,764,053
396,926,308,229
141,855,755,959
1,824,844,731
39,980,000
53,850,079,443
Guarantee deposits
449,461,397,501
452,593,085,830
420,005,795,046
Long-term prepaid expenses
160,217,328,737
190,972,115,072
221,777,052,133
Deferred income tax assets
169,984,873,660
129,557,247,022
45,750,633,145
Property, aircraft and equipment
5,061,892,428,127
3,757,361,448,117
3,554,271,658,779
Investment property
125,801,906,672
128,225,842,074
130,481,669,012
Intangible assets
209,372,285,189
209,881,151,625
197,786,708,327
968,963,408
1,509,960,883
1,753,515,686
8,211,597,772,822
7,012,007,572,019
6,086,361,852,544
Other non-current assets Total assets
APPENDIX
78
Consolidated Financial Statement < Unit : KRW >
27th Period
26th Period
25th Period
2,366,458,304,526
2,048,713,145,130
2,028,486,896,102
156,358,158,393
167,170,456,482
267,036,272,591
Liabilities Current liabilities Trade accounts payable Short-term borrowings Advance receipts Unearned income Withholdings Other payables
68,813,552,380
50,000,000,000
1,000,000,000
294,579,205,404
255,122,301,435
265,260,956,577
16,761,100,401
12,951,703,332
2,287,731,407
46,439,232,387
33,461,769,488
29,603,442,295
361,683,773,098
287,448,769,278
308,589,373,905
Accrued expenses
99,001,166,184
85,915,169,929
96,348,713,964
Income tax liabilities for the year
6,850,912,340
6,041,173,684
5,179,618,718
Taxes withheld
132,424,968,313
130,447,617,012
118,187,311,175
Current portion of debentures issued
703,789,669,073
493,469,791,406
526,379,839,295
Current portion of long-term borrowings
321,497,696,732
405,859,012,947
286,064,859,052
Current portion of obligations under financing leases
158,258,869,821
116,666,455,209
122,548,777,123
Non-current liabilities
4,726,016,690,431
4,059,982,949,503
3,052,984,973,500
Debentures issued
1,229,092,955,241
1,410,970,336,764
923,550,579,485
719,096,611,165
672,759,157,271
795,916,828,448
Current portion of financial derivative liabilities
Long-term borrowings
4,158,924,928
Obligations under financing leases
989,653,180,461
623,504,749,965
608,287,244,705
Defined benefit liability
278,348,150,338
215,695,408,667
202,035,941,066
Long-term advance receipts
468,793,381,381
432,833,708,208
385,656,940,586
Long-term unearned income
265,083,576,294
255,482,811,552
3,728,487,038
76,606,615
9,686,343,182
18,815,340,587
Long-term other payables Deferred income tax credits Provisions Other long-term liabilities Total liabilities
143,500,352,959
53,293,721,386
99,979,796,340
104,744,100,576
63,484,898,907
532,392,079,637
281,012,611,932
51,508,712,678
7,092,474,994,957
6,108,696,094,633
5,081,471,869,602
975,506,825,000
975,506,825,000
975,506,825,000
Equity attributable to owners of the Parent Company Capital stock Capital surplus Other structural elements of capital
1,148,869,102
1,148,869,102
1,148,869,102
(28,488,270,487)
(28,488,270,487)
(28,488,270,487)
Accumulated other comprehensive income (loss)
76,620,305,356
17,672,942,979
22,917,028,208
Retained earnings(Accumulated deficit)
(18,918,277,946)
(65,905,628,767)
29,449,881,616
Non-controlling interest
113,253,326,840
3,376,739,559
4,355,649,503
Total equity Total liabilities and equity
1,119,122,777,865
903,311,477,386
1,004,889,982,942
8,211,597,772,822
7,012,007,572,019
6,086,361,852,544
79
Asiana Airlines Sustainability Report 2015
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Consolidated Comprehensive Income Statement
< Unit : KRW >
27th Period
Sales Cost of sales
26th Period
25th Period
5,836,234,761,575
5,723,506,384,082
5,887,872,743,115
5,186,770,205,133
5,159,649,585,880
5,109,055,196,392
Gross profit
649,464,556,442
563,856,798,202
778,817,546,723
Selling, general and administrative expenses
551,378,544,061
575,091,840,092
599,449,801,304
Operating (loss) income
98,086,012,381
(11,235,041,890)
179,367,745,419
Other operating income
316,837,451,480
359,169,751,542
229,230,561,023
Other operating expenses
264,492,512,193
380,574,222,674
197,053,459,542
Financial income Financial expenses Increased interest in the profit or loss of associates Equity decreased for the profit or loss of associates
17,790,738,344
22,640,762,295
27,129,457,329
152,716,036,287
149,284,939,847
161,600,313,360
31,791,237,208
26,291,720,460
14,004,879,773
6,184,391,890
7,569,996,987
4,545,648,302
Profit (loss) before income tax
41,112,499,043
(140,561,967,101)
86,533,222,340
Income tax expense (income)
22,185,373,555
25,897,062,002
(24,059,906,513)
Profit (loss) for the year
63,297,872,598
(114,664,905,099)
62,473,315,827
62,181,138,535
(115,658,055,999)
61,382,051,563
1,116,734,063
993,150,900
1,091,264,264
43,717,419,351
15,106,259,743
22,349,627,839
Equity holders of the Parent Company Non-controlling interest Other comprehensive income (loss) for the year Subsequently in other comprehensive income are reclassified to profit or loss Loss on valuation of available-for-sale financial assets
83,876,790,955
1,670,529,592
45,407,065,325
(24,964,057,886)
(6,904,089,675)
(752,555,095)
34,629,308
(10,525,146)
(176,858,915)
(15,229,943,026)
20,753,165,890
(21,961,516,810)
(402,820,918)
(166,506,666)
107,015,291,949
(99,558,645,356)
84,822,943,666
105,934,713,198
(100,599,595,612)
83,733,636,062
1,080,578,751
1,040,950,256
1,089,307,604
Basic earnings (loss) per share
319
(593)
317
Diluted earnings (loss) per share
319
(593)
316
Stake in the other comprehensive income of associates Profit/loss on overseas operation Subsequently reclassified to profit or loss unless other comprehensive income Remeasurements of net defined benefit liabilities Equity stake in remeasurements of net defined benefit liabilities of associates Total comprehensive income (loss) for the year Total comprehensive income (loss) attributable to: Equity holders of the Parent Company Non-controlling interest Per share data
APPENDIX
80
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Consolidated Statement of Changes in Shareholders’ Equity
< Unit : KRW >
Equity Shareholders of Parent Company Accumulated Retained Other ComEarnings Components of Other prehensive (Accumulated Equity Income Deficit) Balance at January 1, 2012 916,536,240,000 1,119,928,066 (28,488,270,487) (21,560,623,107) (9,806,103,131) Profit (loss) for the year 61,382,051,563 Capital Stock
Loss on valuation of available-for-sale financial assets Related company’s stake in other profit Comor loss Chang- preExchange differences es in hensive on translation in Equity income foreign operations (loss) Remeasurements of net defined benefit liabilities Related company’s stake in Remeasurements of net defined benefit liabilities Transac- Bond with warrants exercised tions with Acquisition and liquidation of equity subsidiaries holders Dividends Balance at December 31, 2012 Balance at January 1, 2013 Profit (loss) for the year Loss on valuation of available-for-sale financial assets Related company’s stake in other profit Comor loss Chang- preExchange differences es in hensive on translation in Equity income foreign operations (loss) Remeasurements of net defined benefit liabilities Related company’s stake in Remeasurements of net defined benefit liabilities Transac- Bond with warrants exercised tions with Acquisition and liquidation of equity subsidiaries holders Dividends Balance at December 31, 2013 Balance at January 1, 2014 Profit (loss) for the year Loss on valuation of available-for-sale financial assets Related company’s stake in other profit Comor loss Chang- preExchange differences es in hensive on translation in Equity income foreign operations (loss) Remeasurements of net defined benefit liabilities Related company’s stake in Remeasurements of net defined benefit liabilities Transac- Bond with warrants exercised tions with Acquisition and liquidation of equity subsidiaries holders Dividends Balance at December 31, 2014
58,970,585,000
Capital Surplus
975,506,825,000 1,148,869,102 (28,488,270,487) 975,506,825,000 1,148,869,102 (28,488,270,487)
857,801,171,341 61,382,051,563
Non-controlling Interest 3,486,241,899 1,091,264,264
Total Equity 861,287,413,240 62,473,315,827
45,407,065,325
45,407,065,325
45,407,065,325
(752,555,095)
(752,555,095)
(752,555,095)
(176,858,915)
(176,858,915)
(176,858,915)
(21,959,560,150)
(21,959,560,150)
(166,506,666)
(166,506,666)
28,941,036
975,506,825,000 1,148,869,102 (28,488,270,487) 975,506,825,000 1,148,869,102 (28,488,270,487)
Total
(1,956,660)
(21,961,516,810) (166,506,666)
58,999,526,036
58,999,526,036 (19,900,000)
(19,900,000)
(200,000,000) 4,355,649,503 4,355,649,503 993,150,900
(200,000,000) 1,004,889,982,942 1,004,889,982,942 (114,664,905,099)
22,917,028,208 22,917,028,208
29,449,881,616 1,000,534,333,439 29,449,881,616 1,000,534,333,439 (115,658,055,999) (115,658,055,999)
1,670,529,592
1,670,529,592
1,670,529,592
(6,904,089,675)
(6,904,089,675)
(6,904,089,675)
(10,525,146)
(10,525,146)
(10,525,146)
20,705,366,534
20,705,366,534
(402,820,918)
(402,820,918)
17,672,942,979 (65,905,628,767) 17,672,942,979 (65,905,628,767) 62,181,138,535
47,799,356
20,753,165,890 (402,820,918)
(19,860,200)
(19,860,200)
(2,000,000,000) 899,934,737,827 3,376,739,559 899,934,737,827 3,376,739,559 62,181,138,535 1,116,734,063
(2,000,000,000) 903,311,477,386 903,311,477,386 63,297,872,598
83,876,790,955
83,876,790,955
83,876,790,955
(24,964,057,886)
(24,964,057,886)
(24,964,057,886)
34,629,308
34,629,308
34,629,308
(15,193,787,714)
975,506,825,000 1,148,869,102 (28,488,270,487) 76,620,305,356
(15,193,787,714)
(36,155,312)
(15,229,943,026)
108,996,008,530
108,996,008,530
(200,000,000) (18,918,277,946) 1,005,869,451,025 113,253,326,840
(200,000,000) 1,119,122,777,865
81
Asiana Airlines Sustainability Report 2015
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Consolidated Cash Flow Statement
< Unit : KRW >
27th Period
Net cash generated from operating activities Cash generated from operations Interest received Interest paid Dividends received Income tax paid Net cash provided by (used in) investing activities Decrease (increase) in short-term financial instruments, net Proceeds from sales of fair value financial asset
26th Period
373,360,980,922
739,045,604,566
345,691,616,180
488,673,169,066
852,099,170,430
470,390,483,903
19,713,138,849
20,474,135,554
16,074,932,653
(137,053,936,901)
(130,905,295,678)
(125,042,358,459)
10,991,569,456
9,746,989,571
10,201,019,094
(8,962,959,548)
(12,369,395,311)
(25,932,461,011)
(390,470,802,010)
(810,775,118,203)
(620,770,739,639)
(102,400,000,000)
(130,440,000,000)
(37,503,883,117)
3,364,381,681
Others (derivatives) Long/Short-term loans granted Increase in Long/Short-term loans granted
25th Period
(92,505,744,964) (49,373,807)
(15,885,860)
(9,214,945,000)
2,288,757,200
17,400
3,842,532,976
Acquisition of available-for-sale financial assets
(3,009,985,620)
(41,975,677,201)
Disposal of available-for-sale financial assets Acquisition of investments in jointly controlled entities and associates Disposition of investments in jointly controlled entities and associates Purchases of property, aircraft and equipment
55,242,090,914
51,223,008,000
Disposal of property, aircraft and equipment Purchases of intangible assets Disposal of intangible assets Increase in guarantee deposits Decrease in guarantee deposits
(76,271,758,714)
(260,602,084,600)
50,000
15,664,649,056
109,440,000
(332,694,804,781)
(384,966,290,360)
(388,126,708,986)
87,664,672,975
7,448,891,822
6,629,447,639
(4,356,730,398)
(18,779,742,108)
(1,952,818,380)
128,932,000
576,000
(145,054,271,780)
(113,392,083,259)
(152,929,346,182)
124,677,238,320
74,322,409,706
41,653,279,576
Acquisition of other investment assets
(15,000,000)
Acquisition and liquidation of subsidiaries Net cash provided by (used in) financing activities Net increase/decrease of short-term borrowings Proceeds from long-term borrowings Repayment of long-term borrowings
(19,900,000) (217,863,436,173)
409,172,098,439
242,828,052,606
(14,000,000,000)
49,000,000,000
(2,294,336,365)
93,095,940,000
104,215,212,578
172,684,530,329
(212,473,496,288)
(81,818,242,392)
(68,417,037,809)
498,119,636,030
820,854,279,022
1,208,110,063,760
Redemption of debentures
(452,499,822,322)
(301,399,409,350)
(1,012,926,504,069)
Payments of finance lease liabilities
(129,905,693,593)
(179,679,741,419)
(112,807,448,240)
(200,000,000)
(2,000,000,000)
Issuance of debentures
Payment of dividends Bond with warrants exercised Net increase/decrease of cash and cash equivalents Cash and cash equivalents at the beginning of year
(200,000,000) 58,678,785,000
(234,973,257,261)
337,442,584,802
(32,251,070,853)
498,919,161,282
162,787,126,531
197,773,237,915
Exchange gains on cash and cash equivalents
(1,076,017,507)
(1,310,550,051)
(2,735,040,531)
Cash and cash equivalents at the end of year
262,869,886,514
498,919,161,282
162,787,126,531
APPENDIX
82
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Statement of Financial Position
< Unit : KRW >
27th Period
26th Period
25th Period
Assets Current assets
856,948,770,852
944,905,100,720
841,188,516,318
146,168,186,575
245,511,127,872
109,144,616,284
Short-term financial instruments
7,426,020,000
7,311,780,000
7,218,960,000
Sales of fair value financial asset
16,074,709,900
328,005,677,219
325,176,822,953
339,130,767,888
Other receivables
27,681,567,805
31,980,961,404
27,410,620,350
Accrued income
18,446,961,630
19,598,351,949
21,726,616,727
Short-term loans receivable
13,268,240,000
13,171,660,000
13,206,420,000
Advance payments
44,980,162,852
55,966,524,754
100,765,455,093
Prepaid expenses
69,827,286,541
64,880,488,107
59,844,238,613
Prepaid taxes
2,035,650,365
1,661,414,515
2,120,238,518
Current tax assets
1,162,530,006
1,741,356,807
287,861,217
Cash and cash equivalents
Sales of current available-for-sale financial assets Trade receivables
Inventories Non-current assets Long-term financial instruments Available-for-sale financial assets Investments in subsidiaries, associates and jointly controlled entities Long-term loans receivable Guarantee deposits
1,822,908,411
180,048,869,548
177,904,612,359
160,332,721,628
5,623,368,897,846
5,109,325,947,265
4,828,299,119,140
22,000,000
22,000,000
22,000,000
310,351,917,330
269,898,378,439
244,958,956,611
603,924,208,656
603,924,258,556
531,824,358,356 51,628,975,739
459,191,226,879
469,518,555,156
439,338,248,873
Long-term prepaid expense
160,167,178,013
190,972,115,072
221,777,052,133
Deferred income tax assets
163,648,328,251
150,188,761,540
120,229,955,238
Property, aircraft and equipment
3,854,454,413,497
3,355,718,973,565
3,153,414,132,054
Investment property
42,397,329,058
43,168,055,134
43,938,781,210
Intangible assets
28,336,884,462
24,669,053,691
19,486,145,842
875,411,700
1,245,796,112
1,680,513,084
6,480,317,668,698
6,054,231,047,985
5,669,487,635,458
Other non-current assets Total assets
83
Asiana Airlines Sustainability Report 2015
Statement of Financial Position < Unit : KRW >
27th Period
26th Period
25th Period
2,009,388,516,618
1,747,810,460,513
1,806,649,135,018
109,785,512,257
128,937,173,414
190,478,439,584
Liabilities Current liabilities Trade accounts payable Short-term borrowings Advance receipts Unearned income
35,000,000,000
50,000,000,000
282,803,064,393
250,658,851,799
260,801,136,613
2,390,651,144
1,692,942,049
2,150,394,649
43,163,295,206
31,274,267,556
27,490,974,773
366,341,664,479
301,228,407,648
318,397,817,136
81,881,839,629
76,546,011,948
85,265,123,725
Taxes withheld
127,537,930,753
126,774,052,300
114,571,773,068
Current portion of debentures issued
370,215,721,281
199,867,158,513
376,575,253,388
95,747,696,732
233,514,012,947
158,564,859,052
Withholdings Other payables Accrued expenses
Current portion of long-term borrowings Current portion of obligations under financing leases Current portion of long-term borrowings with assetbacked securitization Current portion of financial derivative liabilities
158,258,869,821
116,666,455,209
122,548,777,123
336,262,270,923
226,492,202,202
149,804,585,907
Non-current liabilities
3,676,199,516,106
3,491,025,963,051
Debentures issued
413,229,062,944
693,269,985,898
685,764,564,123
Long-term borrowings
703,985,927,512
670,384,157,271
740,291,828,448
Obligations under financing leases
989,653,180,461
623,504,749,965
608,287,244,705
Long-term borrowings with asset-backed securitization
762,766,948,124
755,312,115,021
231,363,799,335
Other long-term employee benefits
4,158,924,928 2,927,209,724,912
231,901,123,213
195,612,615,214
186,168,182,369
Long-term advance receipts
468,793,381,381
432,833,708,208
385,656,940,586
Long-term unearned income
1,736,587,407
2,040,023,367
2,342,630,269
9,659,759,878
18,777,747,174
99,688,294,183
104,470,727,224
63,228,523,258
Long-term other payables Provisions Other long-term liabilities Total liabilities
4,445,010,881
3,938,121,005
5,328,264,645
5,685,588,032,724
5,238,836,423,564
4,733,858,859,930
975,506,825,000
975,506,825,000
975,506,825,000
Equity Capital stock Capital surplus Other components of equity Accumulated other comprehensive income (loss) Accumulated deficit Total equity Total liabilities and equity
1,148,869,102
1,148,869,102
1,148,869,102
(28,488,270,487)
(28,488,270,487)
(28,488,270,487)
104,806,657,303
21,180,210,078
17,455,256,732
(258,244,444,944)
(153,953,009,272)
(29,993,904,819)
794,729,635,974
815,394,624,421
935,628,775,528
6,480,317,668,698
6,054,231,047,985
5,669,487,635,458
APPENDIX
84
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Comprehensive Income Statement
< Unit : KRW >
27th Period
Sales
26th Period
25th Period
5,552,678,452,328
5,463,294,738,859
5,638,068,843,903
4,974,194,328,838
4,999,098,214,281
4,963,954,409,845
Gross profit
578,484,123,490
464,196,524,578
674,114,434,058
Selling, general and administrative expenses
Cost of sales
536,256,012,907
525,785,560,145
541,577,919,938
Operating (loss) income
42,228,110,583
(61,589,035,567)
132,536,514,120
Other operating income
201,296,988,113
364,009,913,004
238,662,962,787
Other operating expenses
253,469,987,893
361,801,055,071
175,809,287,287
9,185,549,987
14,269,522,521
24,165,002,126
134,684,228,845
135,167,639,018
149,524,390,346
(135,443,568,055)
(180,278,294,131)
70,030,801,400 (19,418,551,583)
Financial income Finance costs Profit before income tax (benefit) Income tax expense (benefit) Profit(loss) for the year Other comprehensive income (loss) for the year, net of tax Other comprehensive profit/loss after tax that will reclassified to profit/loss Valuation income (profit/loss) on available-for-sale financial assets Other comprehensive profit/loss after tax that will not be reclassified to profit/loss Remeasurements of net defined benefit liabilities
40,209,023,041
37,179,287,115
(95,234,545,014)
(143,099,007,016)
50,612,249,817
74,569,556,567
22,864,855,909
15,509,727,143
83,626,447,225
3,724,953,346
33,245,674,659
(9,056,890,658)
19,139,902,563
(17,735,947,516)
(20,664,988,447)
(120,234,151,107)
66,121,976,960
Basic earnings per share
(488)
(733)
261
Diluted earnings per share
(488)
(733)
261
Total comprehensive income (loss) for the year Per share data
Statement of Changes in Shareholders’ Equity
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012 < Unit : KRW >
Equity Capital Stock
balance at January 1, 2012
916,536,240,000
Capital Surplus
1,119,928,066
Other Accumulated Other ComComponents of Equity prehensive Income (loss)
(28,488,270,487)
(15,790,417,927)
(62,870,207,120) 50,612,249,817
Profit for the year
Comprehenon valuation of availableChang- sive income lossfor-sale financial assets es in (loss) Remeasurements of net defined Equity benefit liabilities Transactions with bond with warrants exercised equity holders
Accumulated Deficit
33,245,674,659
Total Equity 810,507,272,532 50,612,249,817 33,245,674,659
(17,735,947,516)
(17,735,947,516)
58,970,585,000
28,941,036
58,999,526,036
balance at December 31, 2012
975,506,825,000
1,148,869,102
(28,488,270,487)
17,455,256,732
(29,993,904,819)
balance at January 1, 2013
975,506,825,000
1,148,869,102
(28,488,270,487)
17,455,256,732
(29,993,904,819)
935,628,775,528
(143,099,007,016)
(143,099,007,016)
Profit for the year
Comprehenon valuation of availableChang- sive income lossfor-sale financial assets es in (loss) Remeasurements of net defined Equity benefit liabilities
3,724,953,346
935,628,775,528
3,724,953,346 19,139,902,563
19,139,902,563
Transactions with bond with warrants exercised equity holders
balance at December 31, 2013
975,506,825,000
1,148,869,102
(28,488,270,487)
21,180,210,078
(153,953,009,272)
815,394,624,421
balance at January 1, 2014
975,506,825,000
1,148,869,102
(28,488,270,487)
21,180,210,078
(153,953,009,272)
815,394,624,421
(95,234,545,014)
(95,234,545,014)
(9,056,890,658)
(9,056,890,658)
(258,244,444,944)
794,729,635,974
Profit for the year
Comprehenon valuation of availableChang- sive income lossfor-sale financial assets es in (loss) Remeasurements of net defined Equity benefit liabilities
83,626,447,225
83,626,447,225
Transactions with bond with warrants exercised equity holders
balance at December 31, 2014
975,506,825,000
1,148,869,102
(28,488,270,487)
104,806,657,303
85
Asiana Airlines Sustainability Report 2015
The 27th business Period: as of Dec. 31, 2014 The 26th business Period: as of Dec. 31, 2013 The 25th business Period: as of Dec. 31, 2012
Cash Flow Statement
< Unit : KRW >
27th Period
Net cash generated from operating activities
26th Period
25th Period
326,932,434,441
222,827,653,721
287,104,452,490
Cash generated from operations
425,225,325,124
303,906,206,169
390,612,775,602
Interest received
10,346,609,339
11,901,069,566
13,826,612,796
(134,211,071,595)
(122,322,804,185)
(114,905,884,364)
21,791,569,456
30,796,677,761
14,207,619,094
Interest paid Dividends received Income tax paid Net cash provided by (used in) investing activities
3,780,002,117
(1,453,495,590)
(16,636,670,638)
(192,145,775,829)
(482,739,648,239)
(588,667,037,494)
Decrease (increase) in short-term financial instruments, net
(7,295,005,200)
Acquisition of available-for-sale financial assets Disposal of available-for-sale financial assets Proceeds from sales of fair value financial asset Acquisition of investments in jointly controlled entities and associates Disposition of investments in jointly controlled entities and associates Decrease in long-term loans Purchases of property, aircraft and equipment
(41,885,677,200) 55,242,090,914
51,223,008,000
3,364,381,681 (100)
(82,402,084,700)
(383,357,771)
50,000
15,684,609,156
109,590,000
17,400 (318,541,410,201)
(374,764,751,285)
(379,655,691,308)
Disposal of property, aircraft and equipment
86,417,457,913
606,756,874
6,059,690,747
Purchases of intangible assets
(3,418,313,414)
(5,215,164,137)
(1,860,281,260)
(144,792,485,880)
(110,908,801,249)
(175,153,574,699)
129,453,521,258
74,259,769,702
52,680,006,161
Disposal of intangible assets Increase in guarantee deposits Decrease in guarantee deposits
128,932,000
Disposal of financial derivative trade Net cash provided by (used in) financing activities Net increase/decrease of short-term borrowings Proceeds from long-term borrowings Repayment of long-term borrowings Issuance of debentures Redemption of debentures Payments of finance lease liabilities Proceeds from long-term borrowings with assetsbacked securitization Repayment of long-term borrowings with assetsbacked securitization Bond with warrants exercised Net increase/decrease of cash and cash equivalents
(92,505,744,964) (233,103,390,678)
397,500,647,930
299,703,892,454
(15,000,000,000)
50,000,000,000
(1,294,336,365)
93,095,940,000
104,215,212,578
172,684,530,329
(206,003,496,288)
(73,413,242,392)
(59,917,037,809)
99,552,850,000
233,594,902,022
493,692,791,348
(200,000,000,000)
(381,382,659,949)
(408,227,790,794)
(129,905,693,593)
(179,679,741,419)
(112,807,448,240)
398,566,786,030
895,559,377,000
400,163,906,733
(273,409,776,827)
(251,393,199,910)
(243,269,507,748) 58,678,785,000
(98,316,732,066)
137,588,653,412
(1,858,692,550)
Cash and cash equivalents at the beginning of year
245,511,127,872
109,144,616,284
113,562,499,488
Exchange gains on cash and cash equivalents
(1,026,209,231)
(1,222,141,824)
(2,559,190,654)
Cash and cash equivalents at the end of year
146,168,186,575
245,511,127,872
109,144,616,284
APPENDIX
86
GRI G3.1 Index & Alignment with ISO 26000 Reporting level : ● Report, ◐ Partial Report, ○ no Report, - n/A
GRI Index
Description Participation by Stakeholders Boundary Protocol
Reporting Level ●
Reporting Section 18, 19, 21, 28
●
Cover
Strategy and Analysis 1.1
Statement from the most senior decisionmaker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy
●
5, 22
1.2
Description of key impacts, risks, and opportunities
●
36~40, 42, 43
Organizational Profile 2.1
Name of the organization
●
Cover, 5, 12
2.2
Primary brands, products, and/or services
●
5~7, 52~56
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures
●
22, 25, 26, 28, 47, 60, 90
2.4
Location of organization’s headquarters
●
Cover, 12
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report
●
6, 7, 14,15, 72~74
2.6
Nature of ownership and legal form
●
12, 26
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)
●
14, 15, 36~40, 55, 56
2.8
Scale of the reporting organization (number of employees, net sales/net revenues, total capitalization broken down in terms of debt and equity, and quantity of products or services provided)
●
12~15, 28, 36~40, Appendix
2.9
Significant changes during the reporting period regarding size, structure, or ownership
●
6~9, 12~15, 26~28, 36~41
2.10
Awards received in the reporting period
●
9, 21, 55, 57, 69
Report Parameters 3.1
Reporting period (e.g., fiscal/calendar year) for information provided
●
Cover
3.2
Date of most recent previous report (if any)
●
Cover
3.3
Reporting cycle (annual, biennial, etc.)
●
Cover
3.4
Contact point for questions regarding the report or its contents
●
Cover
3.5
Process for defining report content
●
18, 19
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures)
●
Cover
3.7
Any specific limitations on the scope or boundary of the report
●
Cover
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations
○
3.9
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report
●
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
-
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
-
3.12
Table identifying the location of the Standard Disclosures in the report
●
Cover, 43
3.13
Policy and current practice with regard to seeking external assurance for the report. Explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s)
●
Cover, 91
4.1
Economic value generated and distributed (e.g. revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments)
●
26, 27
4.2
Financial implications and other risks and opportunities for the organization’s activities due to climate change
●
26, 27
4.3
For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members
●
26, 27
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
●
26~28
61~69
Governance, Commitments & Engagement
87
Asiana Airlines Sustainability Report 2015
GRI Index
Description
Reporting Level
Reporting Section
4.5
Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance)
◐
27
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided
●
26, 27
4.7
rocess for determining the composition, qualifications, and expertise of the members of the highest P governance body and its committees (gender and other indicators of diversity
●
26
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation
●
12, 20, 21, 23, 46, 55, 56, 60, 70
4.9
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles
●
12, 20, 21, 23, 42, 43, 46, 55, 56, 60, 70
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance
●
26, 27
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization
●
26
4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
●
9, 22, 46, 61, 66, 70
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy organizations
●
7, 9, 15, 22, 24, 46
4.14
List of stakeholder groups engaged by the organization
●
21, 22, 26~28
4.15
Basis for identification and selection of stakeholders with whom to engage
◐
21, 26, 27
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
●
21, 26~28, 56, 70~75
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns
●
18, 19, 22, 24, 27, 28, 56
EC1
Economic value generated and distributed (e.g. revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments)
●
9, 12, 30, 37~41, 70, 71, Appendix 61~65
Economic
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change
●
EC3
Coverage of the organization’s defined benefit plan obligations
○
EC4
Significant financial assistance received from government
-
EC5
Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
○
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation
●
23, 24, 36~40
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation
●
28
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement
●
6~9, 49~56
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts
●
6~8, 15, 36~41
En1
Materials used by weight or volume
●
41, 66
En2
Percentage of materials used that are recycled input materials
●
68
En3
Direct energy consumption by primary energy source
●
62
En4
Indirect energy consumption by primary source
●
66
En5
Energy saved due to conservation and efficiency improvements
●
62~65
En6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives
●
62~65
En7
Initiatives to reduce indirect energy consumption and reductions achieved
●
62~64
En8
Total water withdrawal by source
●
66
En9
Water sources significantly affected by withdrawal of water
-
En10
Percentage and total volume of water recycled and reused
-
En11
Percentage and total volume of water recycled and reused
-
APPENDIX
88
GRI G3.1 Index & Alignment with ISO 26000 Reporting level : ● Report, ◐ Partial Report, ○ no Report, - n/A
GRI Index
Description
Reporting Level
En12
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
-
En13
Habitats protected or restored
-
En14
Strategies, current actions, and future plans for managing impacts on biodiversity
-
En15
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk
-
En16
Total direct and indirect greenhouse gas emissions by weight
●
Reporting Section
62
En17
Other relevant indirect greenhouse gas emissions by weight
●
67
En18
Initiatives to reduce greenhouse gas emissions and reductions achieved
●
62~65
En19
Emissions of ozone-depleting substances by weight
-
En20
NO, SO, and other significant air emissions by type and weight
○
En21
Total water discharge by quality and destination
●
67
En22
Total weight of waste by type and disposal method
●
67, 68
En23
Total number and volume of significant spills
●
66
En24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
-
En25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff
○
En26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
●
En27
Percentage of products sold and their packaging materials that are reclaimed by category
-
En28
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations
-
En29
Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce
●
En30
Total environmental protection expenditures and investments by type
○
60~69
no violations 60, 65
Social : Labor Practices & Decent Work lA1
Total workforce by employment type, employment contract, and region, broken down by gender
●
28
lA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region
●
28
lA3
Benefits provided to full-time employees that are not provided to temporary or parttime employees, by significant locations of operation
●
29~32
lA4
Percentage of employees covered by collective bargaining agreements
●
31
lA5
Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements
○
lA6
Percentage of total workforce represented in formal joint management–worker health and safety committees
●
lA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
○
lA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases
●
32, 33
lA9
Health and safety topics covered in formal agreements with trade unions
●
32, 33, 47, 48
lA10
Average hours of training per year per employee by gender, and by employee category
●
30, 48, 49
lA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
●
29, 30
lA12
Percentage of employees receiving regular performance and career development reviews, by gender
●
28
lA13
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity
●
26, 28
lA14
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
◐
30, 31
lA15
Return to work and retention rates after parental leave, by gender
●
31
31, 32
89
Asiana Airlines Sustainability Report 2015
GRI Index
Description
Reporting Level
Reporting Section
Human Rights HR1
Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening
●
30, 31
HR2
Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening, and actions taken
●
23, 24
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained
●
25
HR4
Total number of incidents of discrimination and corrective actions taken
-
HR5
Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights
●
HR6
perations and significant suppliers identified as having significant risk for incidents of child labor, and O measures taken to contribute to the effective abolition of child labor
-
HR7
Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
-
HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations
○
HR9
no discrimination 31, 32
Total number of incidents of violations involving rights of indigenous people and actions taken
-
HR10
Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments
○
HR11
Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms
●
28, 30, 55, 56
SO1
Percentage of operations with implemented local community engagement, impact assessments, and development programs
●
70~75
SO2
Percentage and total number of business units analyzed for risks related to corruption
-
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures
●
25
SO4
Actions taken in response to incidents of corruption
●
25
SO5
Public policy positions and participation in public policy development and lobbying
-
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
-
SO7
Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes
○
SO8
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations
○
SO9
Operations with significant potential or actual negative impacts on local communities
-
Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities
●
70~75,
PR1
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures
●
46, 49, 55, 56
PR2
T otal number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes
-
PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements
●
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
-
no violations
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
●
18, 19, 55, 56
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
●
54, 55
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes
-
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
◐
PR9
Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services
-
Society
SO10
Product & Service
6, 14, 15
no violations 55, 56 no violations
APPENDIX
90
Organization Chart (As of July. 1, 2015)
President & CEO Safety & Security Management
Strategic Planning
Corporate Support
business Ethics & Audit
Passenger Business
Cargo Business Regional Headquarters
Human Resources
Commercial Affairs, Reservations & Ticketing
Regulatory Affairs
Corporate Support
Revenue Management
Public Relations
Finance
Sales Planning & Alliances
China
Purchasing & legal Affairs
Marketing
The Americas
Strategy & Planning
Cargo Sales & Planning Japan Cargo Services
Airport Services Europe
Maintenance & Engineering
Maintenance Quality Maintenance Engineering Maintenance Operations
Flight Operations
Operations Control
Cabin Service
Flight Operations Planning
Cabin Service Planning
Flight Crew Operations
Cabin Crew Operations
91
Third-party Assurance Statement
Dear Asiana Airlines Management and Stakeholders
Asiana Airlines has commissioned Korea Productivity Center(hereinafter “ KPC ” ) to provide third-party assurance on the 2015 Sustainability Report(hereinafter “the report”) of Asiana Airlines. KPC offers the following assurance accordingly.
them actively. Especially, the internal channels to communicate with executives such as ‘Fortune comes to a merry home’ and ‘Positive Communication Process’, and external channels such as SnS(Twitters etc.) and ‘Voice of Customers’ were considered to be very excellent.
■ Responsibility and Independence Responsibility for the information and opinions found in the report fully rests on Asiana Airlines. KPC is responsible for the opinions about the report. As an independent assurance agency, KPC did not participate in writing the report and does not have any kind of interest in Asiana Airlines which may hinder its independency.
• Materiality : Selection and Report of Material Issues Materiality principle is a principle which prescribes that an organization has to make decisions on material issues related to the organization and the surrounding stakeholders. KPC has confirmed that Asiana Airlines had selected material issues by materiality evaluation paying attention to the organization and major stakeholders of the organization. Asiana Airlines has done its best to draw material issues from its aspect of sustainability through various methods such as global initiatives, media analysis, conversations with stakeholders, management policies and benchmarking the companies of the same kind. As for the material issues which has been drawn, Asiana Airlines is considered to show the efforts of consistent management and improvement about the issues by presenting operation organizations, activities and performances of 2014, and future plans concretely. KPC also has confirmed that the items that had been drawn as material issues were reflected and reported on each page of the report in balanced manners.
■ Assurance Standards KPC has validated the report based on the Type 1 assurance engagement and Moderate assurance level in AA1000AS(2008) assurance standards, and confirmed the areas subjected to the principles of inclusivity, materiality and responsiveness in accordance with the AA1000APS(2008). KPC also applied the GRI G3.1 Guideline and ISO26000. ■ Limited Areas KPC has verified the performance of 2014 by the assurance standards above. Validation of credibility on some data such as financial performance, environmental data(e.g. the amount of greenhouse gas emission)and, information about internal system linkage are not included. As on the spot inspection is restricted to the headquarters in Seoul, the results can be changed when additional validation process is performed. ■ Assurance Methodology KPC has validated the report using the following methodologies
• Confirming the observance of principles in contents and quality based on the GRI G3.1 Guideline. • Examining stakeholders’ interest and sustainability issues • Inspecting the appropriateness in material issue selection and conformity of described • contents by media research and benchmarking analysis • Examining the appropriateness and error of contents described in the report by the • comparison and analysis of the other sources • On the spot inspection: Confirming the validity of important data and information • through the interview with the person in charge, confirming the internal process and system ■ Assurance Results KPC had reviewed the contents in the report and expressed its opinions on it, and corrected the report if necessary. KPC has confirmed that the report reflects Asiana Airlines’ sustainability management activities and the performance sincerely and fairly. KPC could not find any significant error or inappropriate description in this report during validation activities.
• Inclusivity : Participation of Stakeholders Inclusivity principle is a principle which prescribes that an organization let the stakeholders participate in the process of developing strategic measures for sustainability. KPC has confirmed that Asiana Airlines had continued various efforts to observe and improve the inclusivity principle. Asiana Airlines has integrated relationships with six major stakeholder groups(customer, shareholder/investor, government/related agencies, employees, partners, environment/society) and is running communication channels for each stakeholder group to communicate with
• Responsiveness : Response of Organization on Issues Responsiveness principle is a principle which prescribes that an organization has to respond to the issues that might be able to impact stakeholders’ achievements. KPC has confirmed that Asiana Airlines grasped major expected items which had an impact on stakeholders' achievements and performed activities to cope with them, and the contents were described in the report properly. Especially, Asiana Airlines’ efforts to reinforce the safety management in accordance with the increase of stakeholders' interest about safety issues, such as running a safety management system to ensure safety operations, offering specialty trainings, investment report on training facilities were considered to be a superior example of sustainability management compared to other companies. ■ Recommendation KPC has a high opinion of Asiana Airlines’ various efforts and performance on the reinforcement of sustainability. KPC recommends the following schemes for future reports and improvement of sustainability management.
• Control of Sustainability Management Target : KPC recommends that Asiana Airlines set its goal to achieve sustainability management visions and strategy, establish implementation plans to fulfill the goal, and report the performance regularly. KPC also recommends that Asiana Airlines reinforce the connectivity between non-financial performance(environmental and social activities etc.) and financial performance for the transition to an integrated management system that is able to create a synergy of management. • Reinforcing the Quantitative Data Management : KPC recommends that Asiana Airlines reinforce the quality of data and information by collecting and examining them regularly and resetting the estimation and reporting standard of each index through the introduction of a process for improving the quality of data and information. KPC especially recommends that Asiana Airlines make an explicit report about activities, changes in data and future plans for qualitative improvement and consistent management of environmental performance to take measures for emission trading which has great influence on aviation industry.
September , 2015
KPC Chairman & CEO
Hong, Soon-Jik Korea Productivity Center Sustainability Management Center is an assurance agency which is officially certified by Accountability, who has established AA1000, the global standards on stakeholder participation and assurance. KPC is qualified for performing its own assurance activities. As for the assurance members, they are well experienced experts in the field of sustainability management consultation and validation who have received specialized educations.
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